Infrastructure development finance company (IDFC) is now in the race to acquire stake in IFCI, reports Business Standard.
It is now in competition with the Blackstone Group and General Electric Capital Corporation.
The other companies looking at IFCI`s stake includes a group led by billionaire Wilbur Ross and comprising the Goldman Sachs Group, Standard Chartered and HDFC, Cargill Financial Services Corporation, Natixis and Newbridge Asia. The winner of the 26% stake in IFCI stake will gain access to a market where lending grew 28% last year, and where the central bank limits foreign banks` ownership of local private rivals to 5%. IFCI, was bailed out by the government in 2003 because of bad debts, in July it announced plans to sell stake to a local or overseas investor to bolster its capital.
IFCI will finance some of the USD 475 billion of roads, ports and power stations the government intends to build by 2012. The potential returns induced Blackstone, Citigroup and the 3i Group to start infrastructure funds this year.
IDFC is partnering Blackstone and Citigroup for a USD 5 billion infrastructure fund in India.
Source: My IRIS