Funds raising plan generates interest in IDBI

ICICI is making Follow on Public Offer after Offer every year. Its Peer IDBI is still struggling to make a comeback. The issue of bonds will fund IDBI’s future expansion and acquisition purposes, reports sugget. It would be a medium-term programme and the money would be raised in different tranches, including perpetual Tier I and Tier II capital.

The funds would also used for carrying out operations of overseas branches proposed to be opened during FY 2008.

The net profit of Industrial Development Bank of India (IDBI) rose 6.11% to Rs 213.54 crore in Q4 March 2007 as against Rs 201.24 crore in Q4 March 2006. Total income rose 12.41% to Rs 2185.35 crore in Q4 March 2007 as against Rs 1944.16 crore in Q4 March 2006.

The net profit rose 12.38% to Rs 630.31 crore in the year ended March 2007 (FY 2007) as against Rs 560.89 crore in the year ended FY 2006. Total income rose 10.68% to Rs 7372.60 crore in FY 2007 as against Rs 6661.17 crore in the FY 2006.

IDBI’s principal activities are to provide commercial banking services which include merchant banking, direct finance, infrastructure finance, rehabilitation assistance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services.

The stock hit a low of Rs 97.40 and high of Rs 99.40 so far during the day.

The scrip gained from Rs 92 on 10 May 2007 to a high of Rs 104.10 on 21 May 2007. The Rs 100 level was breached later due to continuous profit booking and scrip fell to Rs 92.55 by 30 May 2007. The scrip, again bounced back to trade at Rs 101.25 by 7 June 2007, but fell soon to Rs 96.55 by 12 June 2007.