IFCI, formerly known as Industrial Finance Corporation of India, registered a rise of over 19% in shares on Wednesday. Heavy buying in shares continued as the government increased its stake in the company. IFCI is a small-cap stock and trades below Currently 12 points.
IFCI shares are currently trading on BSE 11.55 each, an increase of 15.04%. Overall, the shares have risen by at least 19% with intraday highs of Rs. 11.95 each on the exchange.
Shares of IFCI Market hat is around 2,435.26 crore.
According to regulatory filings, the company’s committee of directors allotted 9,29,36,802 equity shares at a price of Rs. 10.76 each (inclusive of security premium, inter alia) 0.76 each) to Indian government,
The allotment of equity shares was done on a preferential basis. IFCI raised about 100 crores from this issuance.
Due to the latest allotment, the government’s stake in IFCI rises to 66.35% of the total paid-up share capital. Earlier the holding was around 64.86 per cent.
According to the latest Bloomberg alert, the government is also planning to put in 2,000 crore in IFCI and merger of the company with one entity. More details on this will be looked into.
IFCI shares have gained nearly 26 per cent in one month. On BSE, shares were around 9.5 each on 3rd October this year.
IFCI is scheduled to announce its financial performance for the quarter ended September 30, 2022 (Q2FY23) on November 9.
Also, in its meeting to be held on November 9, the Board of the Company will consider premature redemption of the two bonds before their respective maturity dates, subject to the concurrence of the bondholders, the debenture trustee and the BSE.
Two of the bonds are — Private Placement Bond Series 62 Overall 200 crores with maturity of April 21, 2023; and the amount of second subordinate bond series II is 100 crores with a maturity period of August 25, 2023.
In Q1FY23, on a consolidated basis, IFCI reported a net loss of 196.77 crores which came down from the loss of 692.46 crore in the same quarter last year. it had interest income 75.02 crore in Q1FY23 but . fewer 195.33 crore in Q1FY22. Meanwhile, revenue from operations stood at Q1FY23 vs . 311.03 crore in 392.04 crore in Q1FY22.
Established in 1948, IFCI is an NBFC in the public sector. The company has seven subsidiaries and one associate.
IFCI provides financial assistance for diversified development of industries across the spectrum. Financial activities cover a wide variety of projects such as airports, roads, telecommunications, power, real estate, manufacturing, service sector and other allied industries. During its 70 years of existence, some of the projects like Adani Mundra Ports, GMR Goa International Airport, Salasar Highway, NRSS Transmission, and Raichur Power Corporation have been set up with the financial assistance of IFCI.
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