IFCI seeks to sell Clearing Corp. stake for ₹130 crore
IFCI is seeking a minimum price of ₹ 650 per share for its stake in CCIL, thereby a total consideration of ₹ 130 crore from the divestment
Mumbai: IFCI Ltd, the oldest development finance institution in the country, has invited bids from investment banks to help with the sale of its 4% equity stake in the Clearing Corp. of India Ltd (CCIL), documents on IFCI’s website showed.
The move is part of the lender’s efforts to clean up its balance sheet, which recorded gross non-performing assets of 40.9% as of 31 March 2018.
Other shareholders in CCIL include State Bank of India, IDBI Bank, ICICI Bank Ltd, Life Insurance Corp. of India, Bank of Baroda and HDFC Bank Ltd. CCIL was set up in 2001 to provide guaranteed clearing and settlement functions for transactions in money, government securities, foreign exchange and derivative markets.
“IFCI intends to sell up to its entire equity shareholding in CCIL i.e. 20,00,000 (twenty lakh) fully paid up unencumbered equity shares through a competitive bidding process to be submitted by SEBI approved Category I Merchant Banker. The scope of the bidder will be to arrange investor(s) for purchase of equity shares of CCIL on gross price basis i.e. consideration amount payable by the investor,” IFCI said a notification on its website. According to the notification, the lender is seeking a minimum price of ₹650 per share for its stake, which would fetch a total of ₹130 crore from the divestment.
In January, IFCI had invited bids from eligible investors for the 4% stake in CCIL at a price of ₹601 per share, valuing its stake at ₹120.2 crore.
In its bid to reduce its bad loans, the development finance institution has been busy selling its stake in several entities to raise funds.
In September, IFCI sold a 24% stake in Tourism Finance Corp. of India for more than ₹290.63 crore.
The lender has also been selling its stake in The National Stock Exchange Ltd. In January, it sold a 0.20% stake in NSE for ₹92.51 crore.
IFCI’s efforts to hire a banker to help it sell its CCIL stake follow the lender’s efforts to directly invite bids for the stake from investors. In January, IFCI had invited bids from eligible investors for the 4% stake in CCIL at a price of ₹ 601 per share, valuing its stake at ₹ 120.2 crore.
In its efforts to reduce its bad loans, the development finance institution has been busy selling its stakes in several entities to raise funds. In September, IFCI sold a 24% stake in Tourism Finance Corporation of India for over ₹ 290.63 crore.
IFCI has also been selling its stake in the National Stock Exchange (NSE). In January, it sold a 0.20% stake in NSE for ₹ 92.51 crore.
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