Institutional lender IFCI Ltd has issued 400 million shares worth Rs 400 crore to the government of India, making it the largest shareholder in the company.
The shares were issued on conversion of optionally convertible debentures totaling the same amount held by the government. Following this, the central government has become the largest shareholder in the company with a holding of 35%.
The issue has expanded the equity base of the company as total shares outstanding increased to 1.13 billion shares from 737 million earlier.
The move came a day after a Calcutta High Court dismissed a petition challenging the acquisition of control of the listed firm by the government. IFCI shares were trading with marginal losses at Rs 29.85.
“The second tranche of debentures worth Rs 523 crore will be converted as soon as the government gets the debenture certificates,” said an official familiar with the development.
“The Committee of Directors (constituted for the purpose of issue and allotment of equity shares on conversion of Optionally Convertible Debentures held by the Government of India), at the Meeting held at on October 17, 2012 has allotted 40,00,00,000 (Forty crore) equity shares of the Company at par i.e Rs. 10/- each to the Government of India,” the company said
