Infrastructure Development Finance Company (IDFC) on Monday got shareholders’ approval to raise Rs 3,500 crore. The company also got a nod to double its borrowings to Rs 80,000 crore.
Addressing the shareholders here on Monday, IDFC Chairman Deepak S Parekh said that giving the inflection point in the expansion of country’s infrastructure sector, IDFC aimed to at least treble its footprint over the next three to four years. As on March 31, IDFC’s net approvals were Rs 73,000 crore.
He added that the Infrastructure Finance Company (IFC) would allow IDFC to diversify borrowings and access long-term funds, supporting their growth ambitions. “It enables us to obtain more bank financing as well as external commercial borrowings and increase our single party and group exposure,” he said.
Commenting on the proposed capital raising and approval for the borrowing limit, Parekh said: “Borrowing will be based on the disbursement and mode for raising the capital will be discussed at the investors meet, which is scheduled for Monday evening. We are yet to decide whether the company will go for qualified institutional placement, and if we do, then whether it will be one or two installments”. He also said: “If we are raising the money next week, the normal price of a share will be Rs 10 and Rs 150 for premium”.
The company which is into project finance (energy, telecom, transportation and industrial), said energy’s share in the overall exposure dropped to 38 per cent from 40 per cent, transportation to 20 per cent, telecom to 24 per cent from 11 per cent and industrial segment dropped to eight per cent from 11 per cent.
