State-owned India Infrastructure Finance Company Ltd (IIFCL) plans to go public by FY25. The firm’s managing director, PR Jaishankar, said on Friday that they are examining the option.
“We are examining the listing…hopefully it should be done next financial year. IIFCL has come to a stage where we unlock the value for the benefit of the government,” he said.
As of now, IIFCL is 100% owned by the government. Jaishankar said that he expects the FY24 profit to cross Rs 1,500 crore.
IIFCL reported a two-fold jump in standalone net profit to Rs 1,076 crore for FY23, aided by an increase in lending and a reduction of bad loans.
The infrastructure sector lender posted record sanctions and disbursements at Rs 29,171 crore and Rs 13,826 crore, respectively.
Earlier in the day, speaking at the 19th Foundation Day of IIFCL, financial services additional secretary M P Tangirala said that the government has taken a slew of initiatives for infrastructure development as it has a strong multiplier effect and plays pivotal role in the country’s development.
Since inception, IIFCL has given Rs 2.5 lakh crore loans to 750 infra projects. As of December 2023, the company has earned a profit of Rs 1,189 crore with loan sanctions of Rs 30,315 crore, exceeding the figures of last fiscal in just three quarters.
Given the demand so far, Jaishankar said, the loan sanction would cross Rs 40,000 crore by March 2024.
Jaishankar further emphasized on the role that IIFCL is set to play to fund the next phase of infrastructure growth story and the slew of reforms needed to take the infrastructure sector to the next level.
Gross non-performing assets (NPAs) and net NPA ratio has been consistently falling and stood at 3.77% and 0.85% , respectively, as on September 30, 2023.
IIFCL Deputy Managing Director Pawan K Kumar said the company has done credit enhancement of instruments worth Rs 2,500 crore.
