IFCI to raise Rs 1,000 cr for business expansion

The city-based financial institution IFCI today said it would raise up to Rs 1,000 crore from bonds during the current fiscal to meet its business growth plan.

"We are planning to raise Rs 700-1,000 crore in the second or third quarter of 2009-10," IFCI Chief Executive officer Atul K Rai told PTI.

The resources would not be raised through the stock market but through private placement, he added.

The fund raised would be utilised for business expansion, he said, adding the money would be raised through Qualified Institutional Placement (QIP).

The company has comfortable liquidity with capital adequacy ratio of over 20 per cent against the regulatory requirement of 10 per cent, he said.

Rai said the company has created business worth about Rs 3,000 crore during 2008-09. About Rs 2,600 crore of the total has gone towards funding infrastructure sector projects, he added.

IFCI board in 2007 had aborted the process for 26 per cent equity sale to a strategic partner as it did not agree with the bidders' demand for management control.