IFCI board may discuss stake sale on Apr 29
After failing in its effort to rope in a strategic partner last year, IFCI Board may take up the stake sale process again at its board meeting scheduled for April 29.
By PTI |
NEW DELHI: After failing in its effort to rope in a strategic partner last year, IFCI Board may take up the stake sale process again at its board meeting scheduled for April 29.
It is not the part of the board's agenda but may come up for discussion during the meeting, a company source told media.
There are certain non-agenda items that come up for discussion, he said, adding that the board meeting is primarily to finalise the results for financial year 2007-08.
IFCI board had aborted the process for equity sale to a strategic partner, rejecting the demand for management control by the successful bidder in December last year.
NRI billionaire Anil Aggarwal-led Sterlite Industries, jointly with global investment banking giant Morgan Stanley, had emerged as the front-runner by quoting the highest price.
Speaking about the stake sale two months back, IFCI CEO and Managing Director Atul Rai had said it has no immediate proposal to go for another bidding, but in the medium term may require an "angel investor".
"We have got back solvency of the company. We have ability to do fresh business. But over the medium term it will not do harm to this company if it can find the partner who will provide it with the necessary vision, people and support," he said.
Finance Minister P Chidambaram had also backed IFCI's decision to reject the bid offer in December, but said the company could get more offers when a rebidding is initiated. He did not give a timeframe for the rebidding. MORE PTI DP PKS
In the union budget for 2008-09, the government has pledged a Rs 433-crore package to IFCI to help the company restructure its liabilities.
As part of cost cutting measures, the company completed Voluntary Retirement Scheme that resulted in saving of about Rs 27 crore per year.
It is not the part of the board's agenda but may come up for discussion during the meeting, a company source told media.
There are certain non-agenda items that come up for discussion, he said, adding that the board meeting is primarily to finalise the results for financial year 2007-08.
IFCI board had aborted the process for equity sale to a strategic partner, rejecting the demand for management control by the successful bidder in December last year.
NRI billionaire Anil Aggarwal-led Sterlite Industries, jointly with global investment banking giant Morgan Stanley, had emerged as the front-runner by quoting the highest price.
Speaking about the stake sale two months back, IFCI CEO and Managing Director Atul Rai had said it has no immediate proposal to go for another bidding, but in the medium term may require an "angel investor".
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"We have got back solvency of the company. We have ability to do fresh business. But over the medium term it will not do harm to this company if it can find the partner who will provide it with the necessary vision, people and support," he said.
Finance Minister P Chidambaram had also backed IFCI's decision to reject the bid offer in December, but said the company could get more offers when a rebidding is initiated. He did not give a timeframe for the rebidding. MORE PTI DP PKS
In the union budget for 2008-09, the government has pledged a Rs 433-crore package to IFCI to help the company restructure its liabilities.
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Besides, the institution also improved its financial strength by making recovery to the tune of over Rs 1,200 crore from bad assets. The capital adequacy ratio of the company is around 17 per cent. As part of cost cutting measures, the company completed Voluntary Retirement Scheme that resulted in saving of about Rs 27 crore per year.
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Renewed talks of stake sale has resulted in IFCI shares gaining more than 22 per cent in a week. The scrip closed at Rs 60.70 for the week ended April 25 against Rs 50.45 previous week on the Bombay Stock Exchange. Start a SIP with as low as ₹500 with ET Money App!
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