IDFC raises $575 Million through institutional placement

Wednesday, June 30, 2010
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New Delhi: Infrastructure Development Finance Company (IDFC) has raised $575 million (about Rs 2,700 crore) from the sale of shares through qualified institutional placement (QIP). The company completed the QIP process following approval from its shareholders at an annual general meeting for raising up to Rs. 3,500 crore for financing projects. The remaining Rs 800 crore is expected to be mopped up within two weeks through preferential allotment of securities, sources told PTI. They said the QIP was done at a price of Rs 168.25 per share and the equity dilution was about 10.5 per cent. Sources said the issue got investor response from across the world, especially the US. An IDFC spokesperson declined to comment on the QIP, which was managed by CLSA India, Credit Suisse, Morgan Stanley and IDFC Capital. The company had said in a statement after the AGM that its shareholders have approved the "issuance of equity and/or other eligible securities aggregating up to Rs 3,500 crore". It said shareholders have also increased the overall borrowing limit of the company to Rs 80,000 crore. The AGM also cleared a dividend of Rs 1.50 per share. As of March 31, 2010, foreign investors (FII/FDI) had a 45.4 per cent stake in IDFC, while the government of India held 20.1 per cent. Financial institutions and banks had 16.4 per cent participating interest in the company, while retail investors had 9.6 per cent. The remaining equity was held by mutual funds and corporate bodies. For the financial year ended March 31, 2010, the company had reported a net profit of Rs 1,062.29 crore, up 41.67 per cent over the year-ago period.
Source: PTI
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