EXIM Bank''s Global Trade Finance likely to float IPO
24 Nov 2006
Mumbai: Global Trade Finance (GTF), the joint venture factoring company started by Exim Bank of India, is planning to come out with an initial public offer (IPO) of shares, possibly in 2007 to raise its capital base. GTF would also plans to launch e-loans and letter of credit facilities for small-scale industries from next financial year.
GTF, which has a paid-up capital of Rs81 crore, is 40 per cent held by Exim Bank of India, followed by Fimbank, Malta (38.5 per cent), International Finance Corp ( 12.5 per cent) and Bank of Maharashtra (9 per cent).
IFC, the private lending arm of the World Bank, is likely to offload its 12.5 per cent stake during the IPO. If the company skips the IPO plan, other shareholders may pick up IFC's stake.
The Rs10 face value shares of GTF are currently worth Rs60-70 each and IFC would get a good return on its investment, market sources said. The valuation of shares might also go up by March 2007 as GTF is a dividend paying company, backed by strong performance and dominance in the factoring market.
Factoring is sale of receivable invoices at a discount to a third party.
GTF saw its net profit double at Rs13.33 crore in 2005-05. The company also reported a 47 per cenrt rise in turnover at Rs2,800 crore in the year.
