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India Infrastructure Finance Company Ltd (IIFCL) will this year go in for an initial public offering (IPO), unlocking value for the Government, Pawan Kumar, Deputy Managing Director, has said.
Currently, IIFCL, which began its journey on January 5, 2006, is wholly owned by the Government. IIFCL has so far financed 750 infrastructure projects (PPP) involving project outlay of ₹ 13 lakh crore. This covers 28 percent of India’s PPP projects.
“This year we are striving to go for public listing. We are looking to unlock some of the value creation which we have added in last couple of years”, Kumar said at the 19th Foundation Day event of IIFCL here on Friday.
“As we enter the 19th birthday we are now a 100 per cent government owned. We are trying to move on this so that when we meet for the 20th birthday we would have diluted some percentage”.
Kumar said that employees should be granted ESOPs so that they can partake in the growth of the company.
IIFCL is expected to close the current fiscal with record sanctions of ₹ 40,000 crore, much higher than the sanctions level of ₹ 9,337 crore in FY’20. Disbursements too saw strong growth over the last four years.
The infra lender, which has recorded net profits in last three year, had registered net profit of ₹ 1,277 crore in 2022-23. The current fiscal will see the company close with bottomline of about ₹ 1,600 crore, Kumar said.
P R Jaishankar, Managing Director, IIFCL said that “last three fiscal years has been record breaking in terms of sanctions, disbursements, profitability and lower NPA”.
Jaishankar said that IIFCL’s performance, especially in last four years, is a testimony that India’s infrastructure is now positioned itself for greater growth. IIFCL has cumulative sanctions of ₹ 2.5 lakh crore and disbursements of ₹ 1.2 lakh crore. About 40 percent of IIFCL’s overall business was done in the last four years.
Jaishankar also said that IIFCL is looking to Sponsor AIFs and issue green sustainability bonds. He also underscored the need to enhance the fundamentals of greenfield projects with a view to attract both domestic and foreign investors.
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