Friday, July 6, 2007

IDFC takes QIP route to raise Rs 2,100 crore

Infrastructure Development Finance Company (IDFC) said that it has successfully placed its qualified institutional placement (QIP) offering of Rs 2,100 crore through issue of 16.53-crore shares at Rs 127 per share.

The issue generated significant interest from a number of high quality institutional investors across Asia, Europe and the US. A company statement to the exchange said that the proceeds of the offering would be used to augment the company’s capital base, enhance the strength of its balance sheet for its lending operations, provide seed capital to some of the funds that the company manages, to explore opportunities in principal investments and for general corporate purposes.

The 10-year old institution was promoted by the government during Chidambaram’s earlier tenure in the finance ministry. In recent years, the institution has shown ambitions of growing its business mix. In April, IDFC bought one-third stake in privately-held stockbroking firm SSKI. Last month, the company hiked its equity stake to 66.67%.

Read more in The Economic Times article.

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