Review on IFCI

SEVEN TO EIGHT FOREIGN INVESTORS INTERSTED IN TAKING 51% STAKE IN IFCI :( (NSE/BSE: 500106 .Rs.38)

Overseas funds and institutions, as well as domestic entities, are showing heightened buying interest in IFCI so as to come on board as a "strategic investor" in the term-lending institution.

The prospect of acquiring up to 51 per cent stake along with management rights in the company might be an important factor for the surge in interest, said sources privy to the mandate given by IFCI to the Advisor, Ernst & Young.

Last month, IFCI had appointed Ernst &Young to advise it on the induction of a strategic investor in the company. Although the expressions of interest (EoIs) are yet to be invited, six domestic and 7-8 foreign institutions and funds have already sounded out Ernst & Young that they are keen to participate in the EoI and information memorandum process.

To augment its resources, IFCI has, during calendar 2007, sold seven per cent stake in the NSE and eight per cent stake in ICRA in the recent public issue and holding the rest of the shares. With ICRA doing so well in the market IFCI which is one of the major share holders of ICRA will get a big boost to its value What is more exciting is on Friday there were strong rumours that IFCI plans to sell off its TCS holding as well. Consider IFCI a dark horse priced very low.