IFCI receives 10 EoIs for 26% stake sale

As many as 10 domestic and foreign financial institutions and consortia have evinced interest in picking up 26% stake in IFCI, the expressions of interest for which were opened today.

Out of 10 suitors, seven are standalone including domestic financial institution IDFC, Kotak Mahindra Bank, GE Capital, Cargill, French banking company Nataxis, US-based private equity fund manager Blackstone and Newbridge, an IFCI official said.

The interested parties also include three consortia including one between W L Ross, Standard Chartered Bank, Goldman Sachs and HDFC, and another between Punjab National Bank with Shinsei Bank of Japan and US-based investor JC Flowers, he added.

Besides, Morgan Stanley in consortium with Sterlite Industries has also evinced interest in the picking up stake in the financial institution.

As on March 31, 2007, Morgan Stanley and Goldman Sachs had 2.5% and 3.3% stake respectively in IFCI.

The company will evaluate the EoIs and announce the shortlisted investors on September 25.

Thereafter, the shortlisted entities would be asked to undertake due diligence and submit bids indicating the price they would be willing to pay for the 26% stake.

Based on the technical and financial bids, the board would finalise the name of strategic partners. Request For Proposal (RFP) would be floated by October 1.

The pre-qualified investors will need to submit sealed financial bids by November end.

Ernst & Young (E&Y) had been appointed by IFCI as consultant to find a strategic partner for reviving the financial institution.