Reuters

Mumbai: Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and Barclays are interested in buying a 26% stake in India’s IFCI Ltd.

The board of the Indian state-run financial institution will meet on 4August to start the process of inviting bids which is expected to be completed in six months.

The company has valued itself at Rs70 per share, citing industry sources. That would value the company at almost Rs45 billion.

“We will go by the process and select competitively priced bids, even though there is tremendous interest from domestic and foreign parties,” an IFCI official told the media on 1August.

Sources told Reuters in April that IFCI was seeking to raise as much as $250 million by seling up to 26% to a foreign investor.

IFCI said in July its board had approved a proposal to invite bids from strategic investors. It had appointed Ernst & Young as adviser earlier this year.

There were reports that mentioned that IFCI had delayed the sale process because it wanted to first build a robust business model.

The interest from foreign investors comes after IFCI improved its financial position and the federal government said it would inject Rs13 billion into the firm in 2007/08.