More Stories

Informist, Monday, Jan. 6, 2025

 

Please click here to read all liners published on this story

--IIFCL sources: Got board approval for initial public offering
--IIFCL sources: IPO launch likely in 1 year once Cabinet OKs
--IIFCL sources: IPO plan with banking dept, DIPAM; to seek other depts' nod
--IIFCL sources: Govt may dilute some stake via offer for sale route
--IIFCL sources: Need equity infusion from govt
--IIFCL sources: Will seek equity support in FY26 Budget
--IIFCL sources: Would like capital adequacy ratio to be 30% from current 26%

 

By Priyasmita Dutta and Sagar Sen

 

NEW DELHI – The board of state-owned India Infrastructure Finance Co. Ltd. has approved the proposal for the company to go public, a senior company official has said. "The (initial public offering) proposal was discussed at the last board meeting, and it has been approved. Now the proposal is with the finance ministry," the official told Informist on the condition of anonymity.

 

According to the official, once the finance ministry approves the proposal for the initial public offering, IIFCL will seek views from other relevant government departments given the company's extensive involvement in infrastructure financing. Once approval from various ministries is in place, the disinvestment department is likely to seek the Cabinet's approval for the same, the official said. "After that, IIFCL will approach the Securities and Exchange Board of India and that process may take 1-3 months."

 

"The entire process (to launch IPO) may take up to one year from now. It also depends (on) whether the government wants to offload some of its stake in the company at the time of IPO through an offer for sale," the official said.

 

Another official involved with the development said the company, set up in 2006 to provide long-term financial assistance to infrastructure projects, is yet to arrive at the amount that may be raised through the listing. However, the first official said the company would be comfortable if the capital adequacy ratio was around 30% as against a regulatory requirement of 15% and the current 25.46% as of Sept.30. 

 

The second official further said the company has some capital requirements, and is in discussion with the government for fund infusion in the upcoming Budget. "Since the loan book is continuously growing, there is a requirement for capital for which we will approach the government soon," the official said.
 

Last year, a senior company official had told Informist that IIFCL was likely to go for listing only after its annual net profit exceeded INR 20 billion. For the first half of 2024-25 (Apr-Mar), IIFCL's net profit was INR 8.13 billion, down 9% on year. The company expects its full-year net profit to be INR 16.50 billion, up from INR 15.52 billion in FY24.  End

 

Edited by Tanima Banerjee

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.