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Our Bureau

Kolkata, Dec. 8 Infrastructure Development Finance Company (IDFC) finished up 3.21 per cent with a surge in traded quantity.

Some 13 lakh shares changed hand in block deals on the BSE around 2.14 pm at Rs 62, but identity of the buyers and sellers were not available.

The stock has gained around 20 per cent in the past week as it closed at Rs 61.15.

On December 4, there was a block deal involving some 17 lakh shares and on November 18 some 10 lakh shares changed hands.

However, compared to total number of issued shares (129,52,17,001), these figures were miniscule.

Government holding in IDFC is 20.18 per cent, while Sipadan Investment (9.87 per cent), IFC (3.3 per cent), Indivest PTE (3. per cent), Citigroup Global (2.3 per cent), Goldman Sachs (1.13 per cent) and GE Equity 1.22 (per cent) were among the foreign institutional investors.

According to analysts, the current focus on investment push in the infrastructure sector augurs well for IDFC though it has shelved capital raising plan recently in view of slowdown in credit offtake.

SBICap Securities said that the gross approvals and disbursements in the September quarter slowed down by 12 per cent and 7 per cent Y-o-Y.

“While the worsening macro environment is one reason for the slowdown, we believe that limits on leveraging are another reason for the cautious approach on loan growth,” it further said.

Although loan growth estimates have been lowered by a number of brokerage, the recent incentives packages and more in the near future might change the scenario.

However, head of overseas fund advisors’ country head said that IDFC appeared to have a fetish for best rating than loan growth. “It is underleveraged and needed to more aggressive,” he added.

Analysts also pointed out that non-interest income grew by 71 per cent Y-o-Y in the September quarter primarily led by growth in profit on sale of principal investments.

According to Prabhudas Lilldher, IDFC clearly faces challenging times with respect to sustaining growth, maintaining asset quality and containing costs. “Reasonable cost financing also remains a fair challenge for the company, at least in the near-term.”

However, its current top quality loan book, strong asset management and investment banking/broking franchise and unrealized gains on investments are assets that kept it on a sound footing, the brokerage said.

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