The state-run term lender`s Board will meet on August 4 to begin the process of inviting bids from potential suitors. Barclays is reportedly offering a huge premium.
Financial daily reported that the public sector term lender's Board would meet on August 4, to consider inviting bids for the proposed stake sale. IFCI proposes to sell up to 26% stake in the company, and the process is expected to be completed in six months.
The newspaper also reported that British bank Barclays is willing to offer a huge premium to yesterday's closing price of Rs52.35. At 11:47 p.m., the stock was quoting at Rs56.65 after hitting a high of Rs57.50.
The paper also said that Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and several Indian banks have shown interest in acquiring stake in IFCI. Ernst & Young (E&Y) has been appointed as the consultant for the proposed stake sale in IFCI.
A clutch of FIIs already have equity stake in IFCI. The list includes Morgan Stanley (2.5%), Goldman Sachs (3.3%), Citigroup (2.5%) and Deutsche Securities (4.6%). As many as 11 financial institutions, domestic and overseas, held 34.8% stake in the company as of March 31.
IFCI's accumulated losses were Rs47.72bn at one point. This has come down to Rs8bn as on March 31, 2007. It has a positive net worth at Rs4.46bn. Its capital adequacy is at 14.4%.
Source: India Infoline