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IFCI has not shelved plans to take IFCI Factors public, its Chairman Mr Atul Kumar Rai, has said.
“Given the market conditions, there is some hesitation from our side to go ahead. But we are certainly committed to it. If we are required even to go for another attempt, we will go for it,” he said when asked about IFCI Factors initial public offering (IPO).
IFCI Factors, an IFCI subsidiary, had in July last year filed draft prospectus with market regulator SEBI for an IPO.
Many issuers have delayed approaching the capital market with an IPO in the wake of subdued market conditions. IFCI Factors was last year looking to mop up anywhere between Rs 750 crore and Rs 1,000 crore through an IPO.
This IFCI subsidiary was earlier looking to issue 3,90,86,628 equity shares of Rs 10 each for cash at price to be discovered through a book building process. The issue would have constituted 33 per cent of the post issue paid-up share capital of the company.
IFCI's balance sheet has doubled in the last two and half years. This systemically-important non-banking finance company is betting on increased profits (including unlocking value of its subsidiaries) to fund business growth. Mr Rai made it clear that IFCI on its own was not looking to raise capital for the next two years, given the “complexity” in its capital structure.
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