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| Tata Capital to hive off infra arm as IFC |
| BS Reporter / Kolkata Aug 18, 2010, 00:09 IST |
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Tata Capital, a subsidiary of Tata Sons, plans to hive off its infrastructure finance business into a subsidiary.
 Tata Capital’s total asset base was close to Rs 12,000 crore at the end of 2009-10, of which the share of infrastructure finance was about Rs 4,000 crore.
The company would apply for an IFC (infrastructure finance company) licence shortly, and the new venture was likely to start full-fledged operations by the next financial year, said Praveen Kadle, managing director of Tata Capital at a press meet here today.
“The IFC would enable us to raise long term funds through the ECB (external commercial borrowing) route. Otherwise, it is very difficult to raise funds for a period of 10-12 years, needed in the infrastructure space,” he added.
Tata Capital plans to raise Rs 3,000 crore by the end of 2010-11 for disbursement. It was also vetting the option to raise funds through retail debts, as it did last year.
“By the end of this financial year, we expect to cross Rs 15,000 crore mark. Accordingly, we will raising Rs 3,000 crore by March 2011 through various instruments like long and short-term debt, private placements and retail debt” added Kadle. The company raised about Rs 3,000 crore through non-convertible debentures last year, with the issue being subscribed more than six times.
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