Industrial Finance Corporation of India (IFCI) will this fiscal raise ₹2,000 crore through public issue of bonds, its CEO & Managing Director Malay Mukherjee has said.
The Board of Directors of this Government company approved a shelf prospectus for this fund raising at its meeting here on Tuesday. Indications are that IFCI will offer bonds to retail investors, in multiple tranches with two tenures – of 5 years and 10 years. Plans are afoot to offer call and put options to enable investors to exit before the maturity date of the bonds, Mukherjee said.
He foresees an encouraging preference for such bonds from senior citizens and expressed confidence over retail interest in 10-year bonds. Meanwhile, IFCI has reported a 71 per cent increase in net profit for the quarter ended June 30 at ₹95 crore (₹55 crore). Total income for the quarter under review increased to ₹726 crore (₹551 crore).
Increased lending as well as treasury profits contributed to the rise in the bottom line, Mukherjee said. For the current fiscal, IFCI is targeting a net profit of ₹750 crore as against the net profit of ₹508 crore recorded last fiscal.