Department of Financial Services (DFS) in the Finance Ministry has given its ‘in- principle’ nod to consider ‘Consolidation of IFCI Group’. This would entail merger/amalgamation of IFCI Limited and StockHolding Corporation of India Limited and other group companies of IFCI Limited.
Finance Ministry has also advised IFCI Limited to take further necessary action and to commence the process in accordance with the applicable laws, rules and regulations.
Meanwhile, the board of IFCI Limited on Friday considered and accorded in-principle approval to consider Consolidation of IFCI Group and to commence the process for the same, company filing with the stock exchanges showed.
Under the proposed consolidation plan, StockHolding Corporation of India Limited, IFCI Factors Limited, IFCI Infrastructure Development Ltd and IIDL Realtors Limited will be consolidated (merged/amalgamated) with IFCI Limited, which is listed entity.
The consolidation plan also include consolidation of StockHolding Services Limited, IFCI Financial Services Limited, IFIN Commodities Limited and IFIN Credit Limited into a single entity, which will be a direct subsidiary of the consolidated listed entity.
Also, other group entities —StockHolding Document Management Services Limited, StockHolding Securities IFSC Limited, IFIN Securities Finance Limited, IFCI Venture Capital Funds Limited and MPCON would be direct subsidiaries of the consolidated listed entity.
The Centre had in April 2024 pumped in ₹500 crore into IFCI Ltd and 12.4 crore shares were allotted at price of ₹40.33 per share. On Friday, shares of IFCI closed at ₹58.02 at BSE.
IFCI Limited had for the quarter ended September 30,2024 reported a consolidated net profit of ₹185 crore, up 7 per cent over net profit of ₹173 crore.
In the June quarter, IFCI Limited had recorded a net consolidated loss of ₹88 crore.