Close on the heels of the government?s decision to allow FIIs to invest $25 billion in Indian infrastructure development activities, the Infrastructure Development Finance Company (IDFC) is in talks with several foreign institutional investors (FIIs), including those in Asia, the US and Europe, to raise funds.
The company is also toying with an idea to raise more funds through the external commercial borrowing (ECB) route, apart from targeting domestic retail investors in a big way, said SJ Balesh, senior director (resources), IDFC.
?Given the huge investment opportunities in the domestic infrastructure sector, coupled with the greater interest among FIIs, we have decided to tap them in a big way,? he said, and added that to maintain the growth momentum and meet the increasing demand for infrastructure investments, IDFC, is holding talks with a few FIIs located in Asian, US and European markets.
?On an average, we will raise R15,000 crore annually to meet the growth momentum. We invested around R20,000 crore in infrastructure during 2010-11,? he said, and added, ?We have grown around 50% last year and we hope to maintain the growth momentum.?
He added that the company has not set any time-frame. ?However, we will raise some funds going forward. Similarly, we are also looking at cheaper funds; they could be via ECB. Though, globally, markets are under pressure, we still believe we can raise sufficient funds through the ECB route,? he said.
To a specific question, Balesh said: ?There has been a shift among retail investors in India towards the debt market. Though the equity market continues to be the top choice, IDFC sees an emerging shift towards the debt market by retailers. We raised R1,450 crore from retailers last financial year and have come out with another issue now to raise funds up to R5,000 crore in tranches.?
