Jain has been appointed as interim CEO of the company in place of Atul K Rai who resigned yesterday, sources said.
Following the exit of Rai, shares of the company declined by 2.67% to close at Rs 25.50 per unit on the BSE.
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In October 2012, the government's stake in the company rose to 55.57% following the conversion of debentures worth Rs 923 crore that it held in IFCI into equity.
Following the restructuring of shareholding, the government appointed two directors on the board--Anurag Jain and Sanjeev Kumar Jindal, Director in Department of Financial Services.
Since 2001, the government had been giving funds to IFCI to help it tide over financial problems. It initially gave Rs 400 crore in the form of 20-year OCDs.
In 2002-03, as part of the financial restructuring package of Rs 5,220 crore, the government gave IFCI Rs 523 crore as loan in the form of OCDs. However, the government stopped releasing funds after IFCI started making profits.
The decision to go ahead with the conversion of OCDs into equity was taken by the Committee of Secretaries and the government had also taken exemption from Sebi for application of the takeover code.