New Delhi: Vinod Rai, secretary financial services has stated that the Sterlite-Morgan Stanley grouping, the top bidder for the 26% IFCI stake, may be formally declared as IFCI’s strategic partner on Wednesday.

Sterlite Industries and Morgan Stanley will pay around Rs 112 or Rs 113 per share to take hold of 26 percent stake in the country’s oldest finalcial institution, IFCI, and this will take the total figure to Rs 2,700 crore.

A source familiar with the development said, “The deal with Sterlite and Morgan Stanley is almost done. Some basic clarifications have been sought, which are likely to be addressed by tomorrow.”

In order to settle the remaining details ahead of announcing the winner for the strategic 26% stake, the IFCI board will meet once again on Wednesday (19 Dec).

The company sources said that pricing was not the problem, adding that the board has to discuss certain other issues with Sterlite-Morgan Stanley.

The other two bidders including Shinsei Bank-PNB-JC Flowers and Cargill Financial Services Corporation-Texas Pacific Group have quoted a lower price than Sterlite Industries and Morgan Stanley.

In addition to sharp rise in share prices, lack of clarity on matters such as conversion of debentures held by creditor banks, insurance companies and administration has given rise to confusion among potential capitalists.

At last, only four investors had followed up due diligence on IFCI out of the eight short listed.

While government said it did not want to convert Rs 923 crore debentures held by it into shares at the moment, creditor banks and insurance companies will convert debentures worth Rs 1,323.99 crore into equity shares at a price of Rs 107 a share.

IFCI shares, on Tuesday, marked their closure at Rs 101.1 as against its lat close of Rs 108.40 (on Monday).