Tepid response to IDFC infra bonds, L&T Infra picking up
The first tranche of infra bond issue offered by IDFC has received a tepid response, with the company so far collecting only around Rs 500 crore or 10% of its ambitious target of Rs 5,000 crore for FY12. This means, the company will have to tap retail money more aggressively to achieve its target in the next tranches, market sources told.
The first tranche of infrastructure bond issue offered by Infrastructure Development Finance Company (IDFC) has received a tepid response, with the company collecting only around Rs 500 crore, an official at one of the lead managers to the issue told moneycontrol.com. The infrastructure financing major is looking to raise Rs 5000 crore through infra bonds in financial year 2011-12.
This means, the company will have to tap retail money more aggressively to achieve its target in the next one or two tranches.
The IDFC infra bond issue, offering 9% interest, had opened for subscription on November 21 and closed on December 16. In 2010-11, IDFC had collected Rs 1,464 crore through infra bonds as against the target of Rs 3,400 crore (inclusive of oversubscription option).