According to IDBI general manager S Subramaniam, the financial institution also plans to concentrate on the software sector in the state. For this purpose, its subsidiary Sidbi has also set up a Rs 100 crore venture capital fund, jointly with Karnataka State Industrial Investment Corporation (KSIIDC).

IDBI has hired Karvy Consultants of Hyderabad to dispatch certificates for its Rs 750 crore flexibonds issue, which will open for subscription from September 21 to October 17 this year. IDBI has invested over Rs 20 crore in the company infrastructure in order to help handle the load of certificates that will be issued. Karvy handles IDBI's previous two bond issues as well, which involved an investor base of around 25 lakh.

The Government of Gujarat has recently declared IDBI's flexibonds as public securities. While IDBI has already applied for similar permission fromthe Government of Maharashtra, the governments of Rajasthan and Madhya Pradesh and the endowment department of the Government of Andhra Pradesh have already declared the bonds as public securities.

IDBI mobilised over Rs 4,000 crore under the three previous issues of flexibonds. The financial institution has recorded a 91 per cent increase in approvals, which stand at Rs 5,800 crore for the first quarter of the current fiscal. Of this, 33 per cent or Rs 1,900 crore has been approved for the infrastructure sector. Its disbursement has increased by 70 per cent to Rs 2,500 crore and assets have grown by 19 per cent to Rs 61,500 crore.

Under the issue, IDBI is offering four bonds -- the regular income bonds, education bonds, growing interest bonds and deep discount bonds. The current issue is the fourth tranche of IDBI's resource-raising drive in the current year. The Rs 750 crore issue comes with a greenshoe option of Rs 750 crore.