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Our Bureau

New Delhi, Feb. 3 Tourism Finance Corporation of India (TFCI) is confident that its proposed qualified institutional placement (QIP) with institutional investors would sail through comfortably despite the recent turbulence in financial markets.

The company is looking to garner Rs 160 crore by end-march through the QIP route as well as a preferential allotment of shares to promoter institutions at a price of Rs 48 per share of Rs 10 each (including premium of Rs 38 per share).

TFCI is engaged mainly in the business of financing tourism projects. Shares of the company closed at Rs 33.55 at the Bombay Stock Exchange on Friday.

“Promoter institutions have already agreed to bring in about Rs 60 crore at Rs 48 per share through the preferential allotment. This gives me confidence that we should be able to garner the balance amount of Rs 100 crore through QIP even though the share prices have fallen recently,” Ms Archana Capoor, Chairman and Managing Director of TFCI, told a press conference here on Friday.

She said that the company’s extraordinary general meeting (EGM) has been convened on February 12 to seek shareholders’ approval for the capital raising exercise. To ensure greater participation of FIIs in the QIP issue, the company has decided to seek shareholders’ approval at the EGM to enhance the FII limit from 24 per cent to 49 per cent.

FIIs currently hold 8 per cent stake in the company. While IFCI has 21 per cent stake, State Bank of India (SBI) has 7.42 per cent stake, and LIC has 6.22 per cent stake in TFCI. Currently, TFCI has a paid-up capital of Rs 67 crore.

More Stories on : Foreign Institutional Investors | Preferential Allotments

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