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Informist, Wednesday, Sept. 2, 2026

 

By Priyasmita Dutta and Sagar Sen

 

NEW DELHI – State-owned India Infrastructure Finance Co. Ltd. plans to file the draft red herring prospectus with the Securities and Exchange Board of India during Oct-Mar for an initial public offering, which will likely include a fresh issue of shares and an offer for sale for the government to lower its stake, a finance ministry official said. As a result, both the company and the government will shore up capital, the official told Informist.

 

"Based on market conditions, it can file the DRHP by December itself," the official said. 

 

The merchant bankers will file the DRHP on behalf of the company, in consultation with the finance ministry's disinvestment department and the Department of Financial Services, a second finance ministry official said. Typically, SEBI takes two to three months to go through the application before approving it, the official added.

 

Informist had reported in April that the company planned to raise around INR 150 billion by listing on the bourses in the current financial year. Through the public issue, the government will look to sell a 10-15% stake in the infrastructure lender, government officials had said.

 

The board of the infrastructure financier had approved the proposal to go public in January 2025. The Union Cabinet had then approved the company's proposal for an initial public offering in the second half of 2025. IIFCL, a wholly owned government company, was established in 2006 to provide long-term financial assistance for infrastructure projects. In September 2013, IIFCL was registered as a non-banking financial company – infrastructure finance company with the Reserve Bank of India and follows the applicable norms of the central bank.

 

The wholly-owned public sector undertaking had a debt-to-equity ratio of 4.31 at the end of June. It reported a net profit of INR 5.37 billion in the June quarter on revenue of INR 21.35 billion. IIFCL's capital-to-risk-weighted asset ratio was 19.99% as of Jun. 30. The RBI mandates that non-deposit-taking non-banking finance companies maintain a minimum capital-to-risk-weighted assets ratio of 15%.

 

The main mandate for the company is to finance both green-field and brown-field projects, through direct lending, takeout finance, refinance, and credit enhancement, across all infrastructure sectors. IIFCL Managing Director Rohit Rishi had said in May that the infrastructure financier is aiming to sanction loans worth INR 750 billion and disburse around INR 390 billion in FY27. In the first two months of the current financial year, the company sanctioned loans worth INR 380 billion notionally, he had said. 

 

Informist had reported last week, citing a company official, that IIFCL's sanctions are likely to be up 50% on year in 2026-27(Apr-Mar), higher than the projections. A back-of-the-envelope calculation shows that sanctions will be around INR 870 billion during the year. Early estimates show that the company's sanctions during Apr-Sept are likely to be higher than those during the entire FY26, the official said. The infrastructure lender had disbursed INR 330 billion in FY26, up 15.7% on year, and sanctioned INR 580 billion, up 12.8% on year.

 

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 a 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. Before that, in FY21, the government had listed Indian Railway Finance Corp. Ltd. and raised INR 15.41 billion by selling a 4.55% stake. 

 

 

The government has its eyes fixed on unlocking the value of India's state-owned assets through stake sales and disinvestments, and so far in FY27, it has collected INR 557.57 billion, more than triple the amount collected in the entirety of the last fiscal. To that extent, the government has collected more than INR 527 billion from disinvestments only twice before--INR 850 billion in FY19 and INR 1 trillion in FY18. 

 

 

Including asset monetisation, the government has collected INR 621.24 billion as miscellaneous capital receipts so far, almost 78% of the full year's target of INR 800 billion. In FY26, the government collected INR 453.06 billion as miscellaneous capital receipts, beating the revised Budget estimate by INR 115 billion.  End

 

Edited by Akul Nishant Akhoury

 

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