stock

IFCI Ltd shares rise 15% as board approves merger with IFCI group

by Psu Connect
Date: 25-11-24

The 52-week high of the company was at Rs 91.39 per share and the 52-week low was at Rs 24.1 per share.

New Delhi: State-owned NBFC, IFCI Ltd shares gained 14.7 percent in Monday's trade and witnessed an intraday high of Rs 66.59 per share on BSE after the company's board approved the consolidation of IFCI Group companies.

IFCI's share price was up 11.39 percent at Rs 64.63 per share on BSE. In comparison, the BSE Sensex was up 1.46 per cent at 80,268.99. The market capitalisation of the company stood at Rs 16,805.39 crore. The 52-week high of the company was at Rs 91.39 per share and the 52-week low was at Rs 24.1 per share.

The board of IFCI at its Meeting held on November 22, 2024, has considered and accorded in-principle approval to consider consolidation of IFCI Group," the filing read.

Read Also : Alok Kumar Sharma assumes charge as ED (NR-1), PowerGrid

The move came after the company received a communication from the Department of Financial Services (DFS), Ministry of Finance to consider 'consolidation of IFCI Group'.

As per the filing, at the company level, StockHolding Corporation of India Ltd, IFCI Factors Ltd, VFCI Infrastructure Development Ltd and IIDL Realtors Ltd will merge with IFCI Ltd.

Read Also : NABARD Relocates Andhra Pradesh Regional Office to Vijayawada: A New Chapter in Rural Development

Further, StockHolding Services Ltd, IFCI Financial Services Ltd, IFIN Commodities Ltd and IFIN Credit Ltd will be merged into a single entity, which will be a direct subsidiary of the consolidated listed entity and the StockHolding Document Management Services Ltd, StockHolding Securities IFSC Ltd, IFIN Securities Finance Ltd, IFCI Venture Capital Funds Ltd and MPCON Ltd shall be direct subsidiaries of the consolidated listed entity.

IFCI, established in 1948, is a development financial institution. It is created by the Government of India to provide long-term financial assistance to industries, fostering the growth of manufacturing, infrastructure, and other key sectors.

Initially, as a fully government-owned company, it is now a publicly listed entity, where the government reduces its stake over time.

Read Also : MGL join hands with Nawgati to drive CNG adoption among fleet operators