MUMBAI:
Insurance major Life Insurance Corporation of Republic Of India (LIC) is evaluating the
option of command for IFCI. The Delhi-based term-lending establishment have invited
bids for a 26% interest in the company. The commands are slated to fold on September
14, 2007. Speaking to ET, LIC
managing manager DK Mehrotra said, “We have got not yet submitted a bid. But
we are considering it.” Mister Malhotra declined to give additional details. Meanwhile, beginnings said the interest bargain would supply LIC an chance to build
its plus base. According to
sources, the country’s biggest coverage company have been approached by a
number of private equity houses and hedgerow finances to offer for the IFCI interest as a
consortium. However, senior functionaries from LIC said that they would prefer to
bid alone. IFCI have said that a pool of four members can use for 26%
stake, but each pool should put up a Pb member. Private equity funds
and hedgerow finances are acute on LIC or IDBI as their lead
member. Among North American Indian entities,
Punjab National Depository Financial Institution (PNB) have shown involvement inch acquiring 26% in IFCI. Similarly, respective foreign Banks and private equity houses have got approached IDBI
to offer as a pool for IFCI. “We are not very acute to offer as this
juncture,” said a senior functionary from IDBI. Even as many foreign entities
have shown involvement in IFCI, beginnings said the Central authorities is very keen
that the controlling interest goes on with North American Indian fiscal firms. “Further, the direction of IFCI, too, is acute on inducting an investor
who is serious, and would enable IFCI to emerge as a stronger
institution,” said a senior IFCI official. The FI, too, have indicated the
applicant itself should be in the concern of fiscal services. These are some
of the chief grounds for private equity houses and hedgerow finances looking at bidding
as pool with North American Indian participants like IDBI and
LIC. IFCI have also stipulated
that there would be a lock-in time period of, at least, three old age for the investor
who gets 26% interest in it. According to the criteria put by IFCI, the
applicant’s plus book should not be less than Rs 10,000 crore or it
should have got a nett worth of Rs 4,000 crore as of March 2006.