IIFCL listing plan advances as Centre weighs 25% IPO structure: Report

The IPO would follow earlier listings of LIC in 2022 and IREDA in 2023, marking another major addition of a government-backed financial institution to the public markets

The government is weighing a plan to divest up to 25% of its stake in India Infrastructure Finance Company Ltd (IIFCL), the state-owned provider of long-term infrastructure financing, the Financial Express reported on Wednesday.

Sources cited by the publication said the current proposal is to structure the IPO so that 25% of the equity is offered at once, enabling the company to meet minimum public shareholding norms in a single step.

Of this, around 10% may be issued as fresh equity to support business expansion, while roughly 15% would come from the government's stake dilution, FE noted.

The IPO would follow earlier listings of LIC in 2022 and IREDA in 2023, marking another major addition of a government-backed financial institution to the public markets.

The Union Cabinet has already approved IIFCL's listing, and the Financial Express reported that the offering is expected in FY27, after all preparatory work is completed.

As highlighted by FE, the government aims to use the listing to strengthen access to long-term financing for infrastructure at competitive rates. IIFCL, which remains fully government-owned, primarily funds greenfield infrastructure projects to help them reach financial closure.

Its support spans sectors such as transport, energy, water, sanitation, communication, social and commercial infrastructure, and green energy, along with refinancing and credit enhancement products.

The company's performance has shown steady improvement, the Financial Express wrote. IIFCL's loan portfolio increased 29.33% from Rs 90,377 crore in FY21 to Rs 1,12,474 crore in FY25, while annual disbursements rose from Rs 6,015 crore to Rs 28,501 crore. Cumulative sanctions reached Rs 1,51,646 crore as of March 31, 2025, reflecting its expanding role in long-term infrastructure financing.