IFCI has tanked 12% at Rs 30.70 on back of huge volumes after the government decided to convert Rs 923 crore of optionally convertible debentures into equity and acquired over 55% stake in the country's oldest financial institution.
“The Cabinet on Thursday approved the finance ministry’s proposal to allow the government to exercise its option to convert the debentures, acquired through fund infusion in two phases at Rs 400 crore and Rs 523 crore, into equity,” the report suggests.
“The move will expand the company's equity base from Rs 738 crore to Rs 1,661 crore,” added report.
The stock opened at Rs 34 and hit a low of Rs 30.60 on the NSE. As many as a combined 18.54 million shares have already changed hands on the counter in morning deals against an average 6.7 million shares that were traded daily in past two weeks on both the exchanges.
