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<TABLE id=msgUN cellSpacing=3 cellPadding=0 width="100%" border=0><TBODY><TR><TD id=msgUNsubj vAlign=top>Coffee Shop Talk - Singapore's GIC may pick up 10% in Arcil</TD><TD id=msgunetc noWrap align=right>
27 Aug, 2008, 0103 hrs IST,George Smith Alexander, ET Bureau
MUMBAI: The investment arm of the Government of Singapore, GIC, may pick up slightly below 10% stake in Asset Reconstruction Company of India (Arcil), subject to approval from the Foreign Investment Promotion Board (FIPB). Arcil is the country’s largest asset reconstruction company (ARC).
Sources said an internal Arcil committee has approved GIC’s proposal to acquire 9-10% stake for around Rs 275 crore, which translates to Rs 80-90 per share.
When contacted by ET, Arcil president and CEO S Khasnobis declined to comment on the issue.
Recently, Arcil concluded its rights issue, which was followed by a private placement of equity. Sources said the rights issue was priced at Rs 70, while the private placement was completed at Rs 80-90. Sources added the rights issue and private placement would add Rs 900 crore to its networth, raising it from Rs 500 crore to Rs 1,400 crore.
Meanwhile, following the expansion of equity base, SBI and IDBI have emerged as the largest Arcil shareholders holding around 20%, while ICICI Bank has reduced its equity from 19% to 16%. Sources said ICICI did not subscribe to its entire share of rights issue.
With the expansion of equity, SBI, IDBI and ICICI Bank would be the largest shareholders, followed by GIC and IDFC. Other key shareholders include Barclays Bank and First Rand Bank of South Africa with around 5-6% stake.
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