IFCI soars 15% as board approves merger of IFCI group of companies

IFCI Ltd shares gained 14.7 per cent in Monday's trade and logged an intraday high of Rs 66.59 per share on BSE. The counter saw buying after the company's board approved the consolidation of IFCI Group companies.

 

Around 10:02 AM, IFCI's share price was up 11.39 percent at Rs 64.63 per share on BSE. In comparison, the BSE Sensex was up 1.46 per cent at 80,268.99. The market capitalisation of the company stood at Rs 16,805.39 crore. The 52-week high of the company was at Rs 91.39 per share and the 52-week low was at Rs 24.1 per share.

 

"The board of IFCI at its Meeting held on November 22, 2024, has considered and accorded in-principle approval to consider consolidation of IFCI Group," the filing read.

 

The move came after the company received of a communication from the Department of Financial Services (DFS), Ministry of Finance to consider 'consolidation of IFCI Group'.

 

As per the filing, at the company level, StockHolding Corporation of India Ltd, IFCI Factors Ltd, VFCI Infrastructure Development Ltd and IIDL Realtors Ltd will merge with IFCI Ltd.

 

Further, StockHolding Services Ltd, IFCI Financial Services Ltd, IFIN Commodities Ltd and IFIN Credit Ltd will be merged into a single entity, which will be a direct subsidiary of the consolidated listed entity. 

 

Additionally, StockHolding Document Management Services Ltd, StockHolding Securities IFSC Ltd, IFIN Securities Finance Ltd, IFCI Venture Capital Funds Ltd and MPCON Ltd shall be direct subsidiaries of the consolidated listed entity.

 

IFCI, established in 1948, is a development financial institution. It is created by the Government of India to provide long-term financial assistance to industries, fostering the growth of manufacturing, infrastructure, and other key sectors. 

 

Over the years, IFCI has played a significant role in promoting industrial development by offering a range of financial services, including term loans, working capital, and corporate debt restructuring. 

 

Though initially fully government-owned, IFCI is now a publicly listed entity, with the government reducing its stake over time. Despite changes, IFCI remains a crucial institution in India’s economic landscape, supporting both public and private sector enterprises with financial resources and strategic guidance to drive industrial growth and modernisation.

 

In the past one year, IFCI shares have gained 137 per cent against Sensex's rise of 20 per cent.