Latest News | Govt Approves Rs 500 Cr Capital Infusion in IFCI Via Preferential Issue of Shares
Get latest articles and stories on Latest News at LatestLY. Domestic financial institution IFCI on Friday said the government has approved Rs 500 crore capital infusion in the company through the preferential issue of shares.
New Delhi, Jan 24 (PTI) Domestic financial institution IFCI on Friday said the government has approved Rs 500 crore capital infusion in the company through the preferential issue of shares.
The Department of Financial Services has conveyed sanction of the President of India to release funds of Rs 500 crore to IFCI Ltd towards subscription to the share capital during FY 2024-25, the state-owned entity said in a regulatory filing.
Following this, the meeting of the board of directors of the company is called on January 29, 2025, to consider the Preferential Issue of equity shares to the central government, subject to the approval of shareholders, stock exchanges and such other regulatory authorities as may be required.
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 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 Limited and StockHolding Corporation of India Limited 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.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)