IFCI board gives nod to hike foreign holding
The board of Industrial Finance Corporation of India (IFCI) on Friday passed an enabling resolution to increase the FII/FDI holding limit in the company up to 74 per cent of its share capital.
By PTI |
NEW DELHI: The board of Industrial Finance Corporation of India (IFCI) on Friday passed an enabling resolution to increase the FII/FDI holding limit in the company up to 74 per cent of its share capital.
"The decision would give clarity about the headroom up to which a strategic foreign investor would be able to pick up stake in the company," told the media.
However, he said the decision to hike the FII/FDI limit is subject to approval of shareholders, RBI, SEBI and all other Government / regulatory nods.
Under the existing provisions, an FII or FDI can take stake upto 24 per cent in the company, he said.
IFCI had recently appointed Ernst & Young as advisor to look for a strategic investor.
A slew of foreign investors including Morgan Stanley (2.5 per cent), Goldman Sachs (3.3 per cent), Citigroup (2.5 per cent) and Deutsche Securities (4.61 per cent) already have significant equity interest in IFCI.
Altogether 11 financial institutions, domestic as well as overseas, hold 34.8 per cent stakes in the company as on March 31, which includes 8.4 per cent stake and 5.01 per cent stake held by LIC and IDBI respectively.
According to market sources, several foreign banks like Citigroup, Barclays, Morgan Stanley and ABN Amro Bank have shown interest in IFCI, the oldest financial institution of the country incorporated in 1947.
Reacting to the news, the scrip touched its 52-week high of Rs 50, up 7.2 per cent over yesterday's close of Rs 46.65 on the Bombay Stock Exchange.
Shares of IFCI later closed at Rs 48.55, more than 4 per cent as 4 crore shares changed hands.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
