IFCI share price: The government has decided to infuse capital of ₹ 500 crore into the public sector financial company IFCI (Industrial Finance Corporation of India) to improve its financial condition. The move comes ahead of the proposed restructuring of IFCI and plans to consolidate it into one group. The objective of this investment is to strengthen the financial health of IFCI and make it operate more effectively, so that it can better meet its objectives.
IFCI shares saw a decline of 4.55 percent last Friday and the stock closed at Rs 60.99 on BSE. However, in the last one year it has given strong returns of about 115 percent.
Government’s stake will increase in IFCI
With this capital infusion, the Government of India’s stake in the company, which stood at 71.72% as of September 2024, is likely to increase further. The capital investment plan in IFCI was recently approved in the Lok Sabha through the first Supplementary Demands for Grants for 2024-25. In this supplementary grant, an additional ₹499.99 crore has been allocated for subscription to the share capital of IFCI.
Additionally, the Department of Financial Services has also approved a consolidation plan, which involves the merger of IFCI with several of its subsidiaries, as the government helps IFCI overcome its financial and operational challenges. Earlier this year, IFCI had raised capital of ₹500 crore by issuing equity shares to the government.
About IFCI
IFCI is a leading financial institution of India, established by the Government of India in 1948. Its main objective is to provide financial assistance to promote industrial development. IFCI is one of the oldest development financial institutions in the country and operates as a public sector company.
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