L&T IDF have spoken to the Indian public sector bank and others on matters of equity
L&T Infrastructure Debt Fund Ltd (L&T IDF have gone ahead and made conversation with an Indian public sector bank, a US bank and other multilateral agencies in order to offload 49% in the funds. This will not cause any new infusion of funds but will help the IDF improve its international credit standing and slow down the holding of the L&T groups in the funds.
The equity capital of L&T IDF will be drastically increased. In fact the sponsor of the Infrastructure Finance is that units of the L&T group will hold 48% stake and 52% of the balance. According to Shiva Rajaram, who happens to be the chief executive of the L&T IDF has mentioned on Monday that they are hoping to find approvals from the foreign investment promotion board and the Reserve Bank of India by the month of October.
The funds are hoping that the presence of a multilateral agency and a foreign bank will allow money to be raised quicker from all the international markets so that expansions and investments can be made on a larger scale.
Source – Malvika Joshi and Madhura Karnik
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