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Government-owned term lender IFCI Ltd today opened the public issue of non-convertible debentures to raise up to Rs 2,000 crore and it will be available for subscription till November 21.
“IFCI Limited..., proposing a public issue of secured redeemable non-convertible debentures of face value of Rs 1,000 each amounting to Rs 250 crore (base issue size) with an option to retain over-subscription aggregating up to the shelf limit of Rs 2,000 crore,” the company said.
The NCDs will be offered for three different tenures of 5 years, 7 years and 10 years with varying coupon rates ranging from 9.4 per cent to 9.10 per cent.
“The proceeds of the money raised will be used towards fresh loans. Of this, 25 per cent will be used for general business purposes, while 75 per cent will be used for specific purpose,” said Malay Mukherjee, Chief Executive Officer and Managing Director, IFCI Ltd, at a conference.
The company will also offer NCDs with a cumulative option for all three tenures of 5, 7 and 10 years.
SBI Capital Markets, AK Capital Services, Edelweiss Financial Services and RR Investors Capital Services are the lead managers to the issue.
In reply to a question on the company’s plan to sell its non-performing assets (NPAs), Mukherjee said the process is going on.
“That (selling of NPAs) is in the process. Out of which some assets we have transferred to asset reconstruction companies (ARCs). Nearly Rs 2,000 crore have come out of that process.”
Mukherjee said the company is in the process of selling further NPAs for which a three-pronged strategy will be deployed.
“First is that we are trying for a OTS (one time settlement) solution for them. Secondly, if it doesn’t work then we are trying to transfer these to ARCs. Third is that if that does not happen, we are disposing off the property,” he said.
On growth, he said the company is targeting a business growth of about 24 per cent this financial year.
“So far we have grown around 12 per cent year-on-year, so we are targeting to double that,” he added.
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