Custom Search

Friday, December 7, 2012

World Bank arm IFC open to investing in Religare’s proposed banking venture

The International Finance Corporation (IFC) has indicated its willingness to invest in Religare’s proposed banking entity. IFC is an arm of the World Bank which invests and lends to the private sector.

IFC has invested $75 million (around Rs 405 crore) in Religare through compulsorily convertible debentures. This transaction has been completed. Once all the debentures are fully converted into equity, IFC will have 7.9 per cent equity making it the single largest institutional investor in Religare. This is the largest investment by IFC in financial sector in entire South Asia.

Religare, in its notice to BSE last month, informed that 1,000 equity shares of face value of Rs 10 each for cash at a price of Rs 315.85/per equity share allotted against 40,48,354 15 per cent compulsory convertible debentures of face value of Rs 1000/each, for cash at par, on a preferential allotment basis to IFC.

Religare is one of the few corporates interested in applying for a new banking licence. When asked about any plan to invest in the new venture, IFC’s Director (Financial Market-Asia) Serge Devieux said, “We will be open to do so. We will decide at the time of setting up.” However, it will depend upon Religare’s willingness, he added.

On his part, Group CEO of Religare Enterprises Sachindra Nath said any decision will be taken later. But he said that IFC’s focus on inclusive growth and financial inclusion will be keys. Religare has been identified by IFC as ‘Partner in Development’ to work collaboratively towards co-developing relevant financial products and services for individuals and SMEs in India.

IFC intends to invest approximately $1 billion in India during year 2012-13 starting (July-June). It has already invested nearly $400 million. Apart from Religare, it has invested in Inox and Power Grid


Post a Comment

Popular Posts

Desi Google | A2Z Famous Quotes | What's Cooking America | Joke Site