The government owns convertible debentures of Rs 923 crore that can be converted into equity shares at later date. This was an irritant for potential strategic investors. The non-banking finance company may think of repaying the money to the government or converting them into equity.
This is the second time IFCI is making an effort to induct an investor after its earlier attempt failed in December, 2007.
IFCI had spurned Sterlite Industries and Morgan Stanley consortium's offer for to buy 26 per cent stake in IFCI, as it was conditional.