Infrastructure Development Finance Company on Monday announced a price band of Rs 29 to Rs 34 a share for its initial public offering of 40.36 crore (403.6 million) equity shares of Rs 10 each. The IPO comprises a fresh issue of 12 crore (120 million) share and an offer for sale of 28.36 crore (283.6 million) shares.
IDFC has reserved up to 50 per cent of the issue for allotment to qualified institutional buyers on a discretionary basis.
At least 15 per cent of the issue will be available for allocation proportionately to non-institutional bidders and at least 35 per cent will be for allocation proportionately to retail individual bidders.
The sponsor shareholders of IDFC, in an amended shareholders' agreement signed on May 9, 2005, have committed to make efforts to keep their cumulative shareholding at a minimum of 26 per cent for the next three years. The sponsor shareholders are the government of India and Industrial Development Bank of India.
After the IPO, the combined shareholding of the sponsor shareholders will come down to 26.41 per cent from 39.9 per cent now. The government stake will drop to 23.29 per cent from 34.91 per cent, while that of IDBI will fall to 3.12 per cent from 4.99 per cent.
The objects of the issue are to achieve the benefit of listing and to raise capital to support growth in assets, IDFC said in a statement.
Kotak Mahindra Investment Banking is the book running lead manager. DSP Merrill Lynch, SBI Capital Markets Ltd and JM Morgan Stanley Ltd are the co-book running lead managers.
Foreign investors American International Group, International Finance Corporation, Asian Development Bank, government of Singapore, CDC and Deutsche Asia Pacific together hold 40 per cent stake in IDFC.
IDFC's board will be reconstituted after the IPO. The number of board members will reduce to 12 from 15 to make the working of the board simpler and to give greater voice to independent directors and minority shareholders.
© 2025