Shareholders likely to opt for initial public offering

Shareholders of IDFC are likely to opt for listing of the company's shares in the board meeting next month as a means of giving an exit option to shareholders.

While foreign strategic investors have expressed interest in taking stake in IDFC, listing of the shares would give shareholders a fair valuation of their investment. The infrastructure entity's book value today stands at Rs 16.

"Listing will help prepare good discipline, especially since we will need additional capital," said IDFC managing director & CEO Nasser Munjee.

Next year IDFC expects to disburse Rs 4,000-5,000 crore, of which a majority will be raised from the market, he added.

This year IDFC expects disbursement to touch Rs 3,000 crore, and has in the first half raised resources to the tune of Rs 1,375 crore from the market.

IDFC was to raise additional funds from the money market, but the recently introduced norms on having to list debentures and securities put a temporary halt on its fund raising exercise.

Today with curbs placed on external commercial borrowings (ECB) and the need for corporates to list their bonds if they wish to access the market, IDFC will have to increasingly rely on the capital market for funding.