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Our Bureau

Mumbai , Jan. 25

THE Government of India has acquired the 15 per cent equity held by the Reserve Bank of India in Infrastructure Development Corporation (IDFC) ahead of its proposed IPO.

The RBI on Tuesday said the Government has acquired equity worth Rs 150 crore and subordinate debt of and Rs 350 crore held by it in IDFC.

While the equity was transferred against payment of cash, the subordinated debt was swapped by a new dated security — Government of India Floating Rate Bonds-2035, which was issued to the RBI on a private placement basis.

At one stage, there was a proposal to divest the stake held by the RBI in favour of State Bank of India. But this did not materialise.

The Government's stake in IDFC will now go up to 35 per cent from the original 20 per cent. However, after the IPO, its stake will come down to 25 per cent. The promoters of IDFC propose to offer 30 per cent of its equity for sale to raise about Rs 750 crore. This is being planned to give an exit option for the existing shareholders.

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