The Hindu Business Line : IFCI gets nod to hike FII investment limit

New Delhi, Oct. 21 The Industrial Finance Corporation of India (IFCI) shareholders have approved a hike in foreign institutional investors’ (FII) investment limit in the company from the current 24 per cent to 74 per cent.

The approval came at the recently held 14th Annual General Meeting (AGM), sources familiar with the situation said.

Strategic investor

As on end-September, FIIs held 21.2 per cent stake in the company.

IFCI is the process of inducting a strategic investor through a stake sale of 26 per cent.

Financial bids

The IFCI CEO and MD, Mr Atul Kumar Rai, had recently said that the company would invite financial bids within a week and expected the bids to come in two months time.

He had indicated that the stake sale process would be completed in two-and-half months.

Currently, eight bidders, including three consortia, are in the fray for the 26-per cent stake sale.

Mr Rai had also hinted that the number of bidders could come down below the current eight entities.

As many as 10 entities had submitted expression of interest (EOI), but two of them — Newbridge Capital of US and Kotak Mahindra Bank — had pulled out of the race.

8 bidders

Currently, the eight bidders in the race are GE Capital Corporation, IDFC, Cargill Financial Services Corporation, Natixis, the Blackstone Group and three consortia of Starlite Industries and Morgan Stanley ; WL Ross & Co LLC, GS Capital Partners (VI) Fund, Standard Chartered Bank and HDFC; Shinsei Bank, PNB and JC Flower and Co.

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