More Stories

Informist, Monday, Apr. 20, 2026

 

--Govt sources: Will launch IIFCL IPO at an opportune time in FY27

--Govt sources: IIFCL planning to raise around INR 150 bln via IPO in FY27

 

By Sagar Sen and Priyasmita Dutta

 

NEW DELHI – State-owned India Infrastructure Finance Co. Ltd. plans to raise around INR 150 billion by listing on the bourses in the current financial year, which started in April, two government officials said. Through the public issue, the government will look to sell a 10-15% stake in the infrastructure lender, while the company may also issue fresh shares to shore up its capital, the officials told Informist.

 

To maintain consistent growth, IIFCL needs a comfortable capital adequacy ratio higher than the regulatory mandate, one of the officials said. As of Dec. 31, the company had reported a capital-to-risk-weighted asset ratio of 21.48%. "We would ideally want to keep the capital adequacy around 20-22% to optimally leverage the funds," the second official said. The Reserve Bank of India mandates that non-deposit-taking non-banking finance companies maintain a minimum capital-to-risk-weighted assets ratio of 15%.

 

In the second half of 2025, the Union Cabinet approved the company's proposal for an initial public offering. The finance ministry will make a final call on the IPO structure in the next few months, a third official said. The government will evaluate various options before deciding on the proportion of the offer-for-sale component and fresh issuance of shares, the officials said.

 

The board of the infrastructure financier had approved the proposal to go public in January 2025. IIFCL, a wholly owned government company, was established in 2006 to provide long-term financial assistance for infrastructure projects. Its main objective is to finance greenfield and brownfield projects through direct lending, takeout finance, refinance, and credit enhancement across all infrastructure sectors. It had a debt-to-equity ratio of 4.4 at the end of December.

 

The company's paid-up capital is INR 100 billion as of Mar. 31. It reported a net profit of INR 4.56 billion in the December quarter, on revenue of INR 18.47 billion.

 

The officials, however, said the current equity market conditions are challenging for the IPO. "The government will be watchful of the market situation and assess an opportune time for the issuance," the first official said. 

 

In the last six years, seven public-sector companies have been listed on the bourses, leading to disinvestment receipts of INR 253 billion. The government raised INR 205 billion in FY23 by selling 3.5% stake in Life Insurance Corp. of India. In the infrastructure sector, it listed Indian Renewable Energy Development Agency Ltd. in FY24, raising around INR 8.6 billion by selling a 10% stake. Prior to that, in FY21, the government had listed Indian Railway Finance Corp. Ltd. and raised INR 15.41 billion by selling 4.55% stake.   End

 

Edited by Saji George Titus

 

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. 2026. All rights reserved.