IDFC To Mop Up $500Mn Via QIP Route

Mumbai: The Infrastructure Development Finance Company (IDFC) has inducted Citigroup, UBS, Kotak Mahindra and JM Financial, to mop up $500 million through share issuances to foreign and domestic institutions early next month. This will be the biggest ever fund mobilisation through the Qualified Institutional Placement (QIP) route, after GVK Power & Infrastructure''s $300 million, handled by Kotak Mahindra, Citigroup and SSKI, and the $240 million issue by Max India, which was lead managed by CLSA.

IDFC''s roadshows for the QIP issue will start in the first week of July, said sources close to the development. The funds will be used to meet the growing demand from companies and the government to build ports, roads, power projects and other utilities.

In the last eight months, 18 firms have raised more than Rs 4,500 crore ($1.09 billion) through the QIP route. QIPs, which was introduced by the Securities and Exchange Board of India (Sebi), are considered portfolio investments, aimed at helping companies to raise funds by selling shares to foreign institutional investors registered with the Sebi.