Days after getting an infrastructure finance company status, Infrastructure Development Finance Co (IDFC) is raising funds to enhance tier-I capital and larger lending demands. Sources say the book for a USD 500 million qualified institutional placement (QIP) opened today with an upsize of USD 75 million.

The floor price for the sale of shares of IDFC, a lender and consultant for infrastructure projects, was set at Rs 168.25 (USD 3.6) a share and the issue will see a placement of 13.7 crore shares, said the sources, who declined to be named as they were not authorised to speak to the media.

There is likely to be a pre-issue dilution of about 10.5%. The proceeds from this issue will be mainly to meet increased lending demands and enhance tier-I capital that currently stands at about 17.4%.