IDFC plans holding company for its subsidiaries

"This will help us in an easier management of the company as all the non-balance sheet business will be grouped into a single entity," said a senior official of IDFC. "We have no intention to list the holding company. This may be considered a later stage," he added.

Apart from IDFC-SSKI, in which IDFC holds 80 per cent stake, the balance 20 per cent share capital is held by employees trust. All the other three subsidiaries are 100 per cent owned by IDFC. The employees' trust in IDFC-SSKI will be allotted shares of the intermediate holding company at fair value as determined by independent valuers and as approved by the board of IDFC-SSKI and IDFC, the notice said.

IDFC has also proposed to grant stock options to IDFC group employees in the holding company representing up to 5 per cent of the share capital. "The proposed restructuring and consolidation is in line with global trends, to achieve size, scale, greater financial strength and flexibility, in the interest of maximising overall shareholder value," the notice said.