IFCI soars on buzz of capital infusion

2 Nov 2022 , 02:56 PM

According the the media reports, the government is planning to infuse about Rs 2,000 crore into state-run IFCI. The plan is to merge IFCI with its unit, Stock Holding Corporation of India, in an attempt to rescue the lender. The capital infusion is aimed at reducing IFCIs debt burden before the merger with its unit, reports added. StockHolding has been profit making and dividend paying company right from its inception. IFCI holds 52.86% equity shareholding in StockHolding, making it a subsidiary of IFCI. StockHolding acts as a Central Record Keeping Agency (CRA) for collection of stamp duty in 19 States and Union Territories on pan India basis. StockHolding is one of the largest Professional Clearing Member of the country. StockHolding distributes GOI Bonds, Sovereign Gold Bonds Fixed Deposits, Corporate Bonds & NCDs of reputed Institutes & Corporates, Mutual Fund Schemes, Initial Public Offers (IPOs) and National Pension System (NPS) etc. Meanwhile, IFCI on 27 October 2022 issued 9.29 crore shares at a price of Rs 10.76 per share on preferential basis to the Government of India, aggregating to around Rs 100 crore. Now the government holds 66.35% shares in the company. IFCI a non-banking finance company in the public sector. On a consolidated basis, IFCI reported net loss of Rs 208.61 crore in Q1 June 2022 as against net loss of Rs 701.65 crore in Q1 June 2021. Total income declined 20.7% to Rs 317.02 crore in Q1 June 2022 over Q1 June 2022. Powered by Capital Market – Live News