Singapore co buys 5% stake in IL&FS

The infrastructure financing consortium expects to finalise the details and place the FCD with the Government of Singapore Investment Corporation soon, though Kochhar did not say when.

The IL&FS representative also declined to reveal the pricing of the debenture issue. It is, however, expected that the holding of certain domestic shareholders in IL&FS will come down after the FCD issue.

IL&FS expects the stake of foreign investors to increase to 30 per cent after the proposed FCD issue.

Foreign investors hold about 25 per cent stake in the company at present, with Japan’s largest leasing company Orix Corporation holding 20.01 percent stake while Credit Commercial de France, a mid cap French financial institution, has a 5 per cent stake.

Unit Trust of India is the largest shareholder in the company with 31.04 per cent stake in the equity. Central Bank of India has 11.09 per cent, while Housing Development Finance Corporation holds 11.01 per cent, State Bank of India has 9.55 per cent stake, and Investment Finance Corporation holds 8.56 per cent shares in the company. Other small shareholders hold the rest 3.71 per cent shares.

IL&FS was set up in May 1989 with an initial capital of Rs 6 crore for commissioning infrastructure projects and providing value-added financial services.

The company is a joint venture of many institutions with private management. It targets to become a meaningful domestic player with strong international perspective.

The company has collaborations with international bodies such as Asian Development Fund and American Insurance Group.