Fund Raising Plan Pushes Up IDFC

After arriving at its all-time high, IDFC was trading flat at Rs 133.60 ahead of its plans to raise about $500 million through qualified institutional placement.
Today, the share price touched a high price of Rs 135.80. Its lowest peak during the day was Rs 132.2. On 24 July 2006, it had touched its 52-week low of Rs 43.35.
As against the Sensex’s return of 0.64%, the Infrastructure Development Finance Company (IDFC) scrip declined 16.07% over the last one month to 2 July 2007. The scrip had outperformed the market over the past quarter, making 71.17% compared to the Sensex’s augmentation of 16.16%.

The share price had declined from Rs 116.10 on 5 June 2007 to Rs 105.60 on 13 June 2007. Since then it had risen to Rs 133.60 on 2 July 2007.
Today, there were 10.14 lakh shares for trading on the BSE counter. During the last one quarter period, the average daily volume of the stock stood at 16.19 lakh shares. The subsisting market price of Rs 133.60 marks down its FY 2007 EPS of Rs 4.4 by a PE multiple of 30.36.
The company is also planning to raise about $500 million thru a qualified institutional placement.

The directors sanctioned a plan to raise capital through equity issue or quasi-equity instruments
In the meantime, the company has decided to increase its equity stake in equity brokerage SSKI Securities to 66.6%, from 33.33%.
IDFC is functioned as a specific intermediary in infrastructure financing. It also offers non-fund-based products such as guarantees, debt-syndication, and advisory services on project and financial structuring.