IDFC IPO to open on 15 July

BANGALORE: Infrastructure Development Finance Company Ltd (IDFC) is accessing the capital market for it's public issue of 403,600,000 equity shares of face value of Rs.10/- each within a price band of Rs.29 and Rs.34. The total public issue comprises of a fresh issue of 120,000,000 equity shares of Rs.10 each and an offer for sale of 283,600,000 equity shares of Rs.10 each.

Up to 50 per cent of the issue is reserved for allotment to Qualified Institutional Bidders (QIB) on a discretionary basis. At least 15 per cent of the issue will be available on a proportionate basis to Non-Institutional Bidders and at least 35 per cent of the issue will be available for allocation on a proportionate basis to Retail Individual Bidders.

The pie chart showing IDFC's involvement in various sectors is (rounded, off and approximate) 34 per cent into energy, 27 per cent into telecom, 26 per cent into transport, 8 per cent into Industrial and commercial infrastructure and the balance into other sectors such as urban services, waste management, rural infrastructure, education and healthcare.

While SEBI regulations prevented all their officials, whom contacted, from revealing specifics at the press conference in Bangalore today, the company's red herring prospectus gives an insight into their involvement in the above-mentioned sectors.

According to the prospectus, the company provides project financing to new projects and acquisition finance to enable consolidation in the telecommunications industry. During fiscal 2005, it approved financing aggregating Rs.13,305 million for eight projects in the telecommunications sector compared to Rs.12,615 million for ten projects in fiscal 2004. Disbursements during fiscal 2005 aggregated Rs. 9,230 million for eleven projects compared to Rs.11,296 million for eleven projects in fiscal 2004.

The company has provided financing to projects in most telecommunications areas, including cellular basic, national and international long distance and cable, and have lent to most of the major private access providers. The company has also had proprietary equity investment in Bharti Tele-ventures Limited, says the red herring prospectus of the company.

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