 "IFCI to partly divest stake in Tourism Finance Corporation")
TFCI is another Delhi-based public financial institution, catering to the financial needs of the tourism industry.
IFCI holds over 42 per cent stake in TFCI. Other promoting entities include State Bank of India (9.19 per cent), Life Insurance Corporation of India (7.7 per cent) and Bank of India (4.7 per cent).
IFCI informed BSE that the company will partially disinvest its shareholding in TFCI in 2014-15. TFCI stock was down by one per cent at Rs 47.7.
However, IFCI will not shed its promoter status. There will not be any strategic divestment. The finance company is only looking to a earn profit on the part-sale of the stake. The cost of investment in TFCI is much less than the ruling price now, said an IFCI executive.
BSE listed tourism finance unit posted a net profit of Rs 18.9 crore for the first quarter ended June 2014 up from Rs 15.8 crore in April-June 2013. The income from operations in Q1 of FY15 was Rs 50 crore up from Rs 45.5 crore in same quarter of FY14.