>IDFC: Building appetite (AMBIT)

Operational triggers remain

■ Raises $575mn through QIP at Rs168.25/shr
■ Dilution at ~12% of pre-diluted equity
■ Capital raising signals intent to capitalize on huge growth opportunities
■ Equity raising likely to trigger rating upgrades from independent agencies
■ IFC status. concomittant with higher ratings, to help bring down marginal cost of funds by 15-20bps
■ Maintain BUY at current levels; TP revised to Rs210 on FY12E estimates

To read the full report: IDFC