Tourism Finance Corporation Of India Ltd - Stock Valuation and Financial Performance

Tourism Finance Corporation of India Ltd. (TFCI) is an Indian Financial Institution, set-up in 1989 upon the recommendations of the National Committee of Tourism under the aegis of Planning Commission. Established as a premier tourism financing institution, TFCI has acted as a catalyst in creation of infrastructure in hospitality segment in over 3 decades of its existence. The company has also enabled various businesses to channelize their investments into different segments and locations of the tourism industry. Set-up by a group of government organisations like IFCI, LIC, OIC, SBI, BOI, Canara Bank, etc., TFCI was instrumental in creating many firsts (viz., Indian Railways’ Palace on Wheels, Esselworld, spa/wellness resort Ananda in the Himalayas, etc.) in hospitality sector.

The company It has been associated with major domestic as well as international hotel operating brands like ITC, Leela, Taj, Lalit, Lemon Tree, Hyatt, Marriott, Hilton, Radisson, Holiday Inn, Ramada, etc. With a view to augment tourist influx, the company has also acted as an advisor to central government, multiple state governments/ its affiliated agencies and has also assisted in interalia charting master tourism plan, promotional activities, market potential assessment, tourism flow surveys, market feasibility studies, etc. To name a few, it has been associated with Government of Himachal Pradesh, Ministry of Environment & Forests (GoI), Government of Gujarat, Gujarat State Tourism Development Corporation, Tamil Nadu Tourism Development Corporation, MP State Tourism Development Corporation Ltd., Delhi Tourism Transport Development Corporation, Jharkhand Tourism Development Corporation, etc. The company had also advised Ministry of Railways for launching and managing pan-India luxury train services.

The stake of IFCI (largest shareholder) was divested through an open market operation in 2017. TFCI’s promoter/promoter group shareholders are India Opportunities III Pte Ltd., Tamaka Capital (Mauritius) Ltd., LIC of India, Oriental Insurance Company and Sajeeve Thomas (an experienced career banker).

The company is focusing on lending/investing in diverse sectors like healthcare, pharma, education, manufacturing etc. while maintaining its leadership position in lending to hospitality segment.

The company has also ventured into Investment Banking activities viz., M&A advisory, Special Situation Funding & Private Equity arrangership, Debt Syndication, asset buy/sell side advising, etc. It also continues to be a dominant player in the hospitality segment and is engaged in project financing, takeover financing, corporate financing, working capital financing, structured financing, etc. the company is also passionate about funding MSME segment, the backbone of the economy.

Business area of the company

The company is a leading player in providing financial assistance by way of Term Loans to its customers. It has been a pioneer in financing projects in tourism sector. With its deep understanding and experience of over 30 years, it has ability to structure the contours of various modes of funding.

The company’s focus is to provide viable funding solutions to borrowers, operating in the field of Tourism, Healthcare, Education, Logistics, Pharma, etc. With a team of professionals, having in-depth understanding of products and sectoral dynamics, it provides Rupee Term Loans, Project Loans, Corporate Loans, Loans Against Securities, Bridge Loan, Take its Financing, Subscription in Equity Shares/Debentures, etc. to its clients.

The company provides assistance to both greenfield as well as for expansion, diversification and modernization projects. In line with the requirements of the client, it provides floating (linked to its Benchmark Rate) as well as fixed rate loans. It also invests in NCDs of rated corporates and subscribe to equity shares on a case-to-case basis.