New Delhi: State-owned term lender IFCI plans to raise Rs 2,000 crore from bonds during the current fiscal to fund business expansion. "We have taken board approval for a public issue of taxable, non-convertible bonds worth Rs 2,000 crore," IFCI Managing Director Malay Mukherjee said.
The fund raised will help in financing business growth, he said. He also said the company intends to disinvest its entire stake in IFCI Financial Services Ltd (I-FIN) during the current fiscal. IFCI holds about 94 per cent stake in I-FIN. It has appointed a consultant for selling its stake. I-FIN is primarily involved in stock broking, investment banking, mutual fund distribution, insurance products and distribution, among other things. The lender is also looking to rope in a strategic partner for another subsidiary, IFCI Factors Ltd, he said.
The company plans to sell 25-26 per cent stake so that the majority stake remains with IFCI, he said, adding the strategic sale would help IFCI unlock its investments. Currently, the company holds 100 per cent stake in IFCI Factors Ltd. Factoring business is a type of financial service wherein a firm sells its accounts receivable to a factoring company, which pay discounted value to seller against receivable receipts.
The company is also weighing the option of selling its non-performing assets to asset reconstruction company.” We have identified 50 such accounts and would like to sell to ARC," he said, adding the aggregate value of such accounts would be Rs 2,000 crore.
