After making an abortive bid to sell 26 per cent stake last year, country's oldest financial institution is still on a look out for a strategic investor, but seeking clarity on the government debt before going to sell stake.
"We are looking for strategic investors in IFCI, but the process can't go forward unless there's clarity on optionally convertible debentures held by the government of India," said IFCI CEO Atul Rai on the sidelines of AGM held here today.
The company is still working on capital restructuring and seeking clarification on the debentures held by the government, he said.
Once issues are resolved, Rai said, the company could initiate the process of induction of a strategic partner as quickly as necessary.
One of the issues related with the capital structure is whether the government would convert its Rs 923 crore bonds issued to IFCI into equity or not.
The government has already made it clear that it would not convert its optionally convertible bonds of Rs 400 crore and Rs 523 crore into equity.
Earlier in June this year, IFCI board approved the initiation of the legal process for aligning the stake of LIC to 8.39 per cent 11.39 per cent.
IFCI board last year had aborted the process for 26 per cent equity sale to a strategic partner, as it did not agree with the bidder's demand for management control.
NRI billionaire Anil Aggarwal-led Sterlite Industries, jointly with global investment banking giant Morgan Stanley, had emerged as the front-runner by quoting the highest price.
IFCI shares were down 5.1 per cent at Rs 45.60 on the National Stock Exchange.
