IFC to pick up 9.92pc stake in Chola DBS
Wednesday, 7 April 2010
CHENNAI, Apr 6 (Economic Times): International Finance Corporation (IFC), the private financing arm of World Bank, has proposed to pick up 9.92 per cent stake in Cholamandalam DBS Finance (CDFL), a part of Murugappa group, for a consideration of Rs 1.23 billion.
IFC will subscribe to 1,08,93,852 equity shares being issued by the NBFC at a price of Rs 92 per share on a preferential basis.
The stake offer to IFC comes close on the heels of the Murugappa's recent decision to regain complete control over the 30-year-old NBFC by buying out DBS Bank, Singapore for a total consideration of Rs 3.76 billion. DBS had joined Chola DBS as a co-promoter ( with 50 per cent stake) in 2005.
CDFL informed shareholders the preferential offer to IFC is to improve the liquidity position and strengthen its capital adequacy ratio (CAR). It is also to maintain the minimum public shareholding of 25 per cent upon conversion of the fully convertible cumulative preference shares of Rs 100 each aggregating to Rs 3 billion allotted earlier to Tube investments of India and DBS Bank, Singapore.
IFC will subscribe to 1,08,93,852 equity shares being issued by the NBFC at a price of Rs 92 per share on a preferential basis.
The stake offer to IFC comes close on the heels of the Murugappa's recent decision to regain complete control over the 30-year-old NBFC by buying out DBS Bank, Singapore for a total consideration of Rs 3.76 billion. DBS had joined Chola DBS as a co-promoter ( with 50 per cent stake) in 2005.
CDFL informed shareholders the preferential offer to IFC is to improve the liquidity position and strengthen its capital adequacy ratio (CAR). It is also to maintain the minimum public shareholding of 25 per cent upon conversion of the fully convertible cumulative preference shares of Rs 100 each aggregating to Rs 3 billion allotted earlier to Tube investments of India and DBS Bank, Singapore.