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IFC eyes up to 15% in Birla Home Finance

Calcutta, Dec. 18: International Finance Corporation (IFC) may acquire a 10-15 per cent stake in Birla Home Finance Ltd — a 50:50 joint venture between K. K. Birla’s Chambal Fertilisers and BHW Holding AG of Germany.

Subrata Dutta Gupta, managing director of Birla Home Finance, said IFC had evinced interest in buying shares of the company. “IFC has indicated to us that it wants to acquire 10-15 per cent stake in Birla Home Finance.”

IFC—the Washington-based multilateral funding agency—has already decided to lend $ 20 million (close to Rs 100 crore) to the company. “IFC has completed the due diligence exercise. We expect to close the deal (for the line of credit) by March-end,” Dutta Gupta said.

On IFC’s proposed investment in the company’s equity, he said the funding agency would have to pay a premium. “We will evaluate the worth of the company to determine the price of its shares. If the deal with IFC materialises, it will lead to further expansion of capital,” he added.

BHW had paid a premium of Rs 3 on shares of Rs 10 when it had invested in the company two years ago.

When the two promoters of the company—Chambal Fertilisers and BHW—recently increased its equity base by Rs 30 crore to Rs 100 crore, they paid a premium of Rs 4 per share.

New scheme

Birla Home Finance launched a new scheme, Easy Home Loan Deposit Scheme, in the city today. Under the scheme, depositors can park their funds for three to five years and on completion of the term obtain loans at a significantly low rate of interest. The company will offer 5 per cent interest on the deposits, and charge 7 per cent on the loan disbursed on completion of the term.

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