IFCI is trading lower by 2% at Rs 35.40 on equity dilution concerns after its board allotted over 500 million equity shares of the company following the conversion of Optionally Convertible Debentures (OCDs).
“The committee constituted for the purpose of issue and allotment of equity shares on conversion of Rs 523 crore Optionally Convertible Debentures held by the Government of India, at the meeting held at on December 20, 2012 has allotted 523 million equity shares of the company at par i.e Rs 10 each to the Government of India,” IFCI said in a filing.
Post conversion, the government’s holding in IFCI would increase from 35.15% to 55.58%. At present, domestic investors, including banks hold 54.73% stake in the firm while FII have 6.75% shares in the firm.
The stock opened at Rs 35.50 and hit a low of Rs 33.20 on the NSE. A combined 4.95 million shares have changed hands on the counter till early noon deals on both the exchanges.
