IFCI Factors Files DRHP For IPO
IFCI Factors Limited has filed DRHP with SEBI for public issue of 39.08 Mn shares, by diluting 33% stake.
The company intends to use the funds to augment its capital base and to meet future capital requirements.Enam Securities is the book running lead manager to the issue.
Transaction Reference: SEBI
Incorporated in 1995, New Delhi-based IFCI Factors was formerly known as Foremost Factors Limited and changed its name to IFCI Factors after its acquisition by IFCI Ltd in 2008.
It provides factoring solutions across various industries. Currently promoter, IFCI Ltd and promoter group together hold 99.74% stake in the company.
For FY2011, it posted total revenue of Rs.80.10 Cr with PAT of Rs.20.10 Cr, whereas for FY2010, its total revenue was Rs.31.63 Cr with PAT of Rs.10.59 Cr.
As per RBI, which regulates factoring business, a factoring company need to maintain a CAR of at least 15% of its risk-weighted assets, with the minimum requirement of Tier I capital being 10%. The disbursements and business is directly related to the amount of Tier I and II capital.
IFCI Factors total CAR was 20.39% as of March 2011, with Tier I capital comprising 14.06%.
According to FCI Statistics, the total number of factoring entities operating worldwide in 2010 was 2,437, with nearly 45.96% of factoring entities operating in Brazil (1,120 companies). In 2010, India has 11 factoring entities operating in 2010.
India's factoring market has grown from 1,625 Mn pounds in 2004 to 2750 Mn pounds in 2010. The growth in factoring in India between 2004 and 2008 was recorded at 220%, compared to 74.50% growth in world-wide factoring volumes over the same period of time.
The first entities to commence factoring operations in India were SBI Factors and Commercial Services Private Limited (promoted by the SBI, SIDBI, Union Bank of India, State Bank of Saurashtra and State Bank of Indore) in April 1991, and CanBank Factors in September 1991.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 01/08/11 | IFCI Factors - IPO | IPO / Offerings | - |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| IFCI Factors Limited | IFCI Limited | IFCI Tower, 9th Floor, 61 Nehru Place |
SBI Factors And Commercial Services Private Limited Canbank Factors Limited |
www.ifcifactors.com |
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