Govt may divest 25% in infra lender IIFCL

IPO TO INCLUDE FRESH EQUITY & STAKE SALE

- PRASANTA SAHU

THE GOVERNMENT WILL likely divest up to 25% stake in India Infrastructure Finance Company (IIFCL), the state-run long-term lender for the infrastructure sector, sources told FE.

While the exact initial public offering (IPO) size will be decided by a ministerial panel, the current thinking is to make the issue size 25% of the equity to meet the minimum public shareholding norm in one shot, the sources said. It could consist of 10% fresh equity to raise capital for business expansion and a 15% stake dilution by the government, they added.

After the LIC in 2022 and IREDA in 2023, this will be a major listing to be undertaken by the government in the staterun financial institutions.