New Delhi: IFCI on Wednesday said its board has approved Rs 500 crore capital infusion in the company through the preferential issue of shares to the Government of India during the quarter.
The board cleared 8,07,23,280 shares to be issued for an amount aggregating up o Rs 500 crore, IFCI said in a regulatory filing.
This approval is subject to an extra-ordinary general meeting to be convened on February 28, it said.
With the infusion, the government's holding in the company is expected to further increase from the existing 71.72 per cent as of September 2024.
The capital infusion plan for IFCI was approved through the passage of the first supplementary demand for grants for 2024-25 in the Lok Sabha in December.
The Industrial Finance Corporation of India (IFCI) was set up by the government on July 1, 1948, as the first development financial institution in the country.
The finance ministry, in November 2024, in principle approved the 'Consolidation of IFCI Group', which entails the merger/amalgamation of IFCI Ltd and StockHolding Corporation of India Ltd and other group companies.
As per the proposal, StockHolding Corporation of India Ltd, IFCI Factors Ltd, IFCI Infrastructure Development Ltd and IIDL Realtors Ltd will merge with IFCI Ltd.
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.
Additionally, 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 that is IFCI.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)