The Hindu Business Line : IIFCL plans to raise Rs 10,000 cr in tranches

In the pipeline
The company already had proposals worth around Rs 1,700 crore.
Proposals involve projects in power, roads ports, special economic zones and would be with private partnership.

Mr S.S. Kohli (right), CMD, India Infrastructure Finance Company Ltd, with Mr Rashesh Shah, MD & CEO, Edelweiss, at a press conference in Mumbai on Thursday to launch an infrastructure report. - Paul Noronha

Mumbai , May 18

India Infrastructure Finance Company Ltd (IIFCL) is looking to raise Rs 10,000 crore over a period of one year.

It proposes to raise the amount in tranches, Mr S.S. Kohli, CMD, IIFCL, said. The company plans to raise Rs 1,500 crore over the next month alone and it is to be a ten-year paper. Additionally, the company is in discussions with overseas multilateral agencies to borrow money.

Mr Kohli said that the company already had proposals worth around Rs 1,700 crore in the pipeline. The proposals involved projects in power, roads ports, special economic zones, etc and would be with private partnership.

Venture funds

Commenting on the need for venture funds to come in a big way, Mr Kohli said that India is viewed as a large market with regard to infrastructure and as such a lot of private funds have evinced interest.

He was addressing the media at the launch of an infrastructure research report — The Grey Revolution — by Edelweiss, a Mumbai-based financial services firm. The report is on the future of the Indian infrastructure sector and the growth potential of over 90 listed companies operating in this segment.

The report states that an investment of $300 billion (Rs 14,00,000 crore) will be required in the infrastructure sector over the next six years to sustain an annual GDP growth rate of at least 7 per cent.

"The report will aid us in funding bankable projects," he said.

Notwithstanding that the infrastructure sector is currently at a very nascent stage in terms of creation of market capitalisation, the report has assessed that without any expansion in valuation multiples, the sheer growth in topline and bottomline of infrastructure companies should help triple market capitalisation to around $190 billion by FY 2010 from the current levels of about $64 billion.

"With adequate demand, bold de-regulation, high level of global interest, capable supplier/vendor base and an ever-liberalising economy, we see the India infrastructure story as a once in a lifetime inflection point," said Mr Rashesh Shah, Managing Director and CEO, Edelweiss.

More Stories on : Infrastructure | Financial Institutions | Venture Capital

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page