Shares of IFCI Limited gained as much as 4% on 20 March after the Board of Directors of the company considered and approved raising Rs 500 crore via the Preferential Issue of Equity Shares.
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Through these Equity shares there would be capital infusion aggregating up to Rs 500 crore for the financial year 2023-24 to the Promoters i.e. Government of India, which is subject to the approval of the Shareholders, and Stock Exchange.

IFCI said in a regulatory filing that 12,39,77,188 shares of Equity Shares will be issued for an amount aggregating up to Rs 500 crore. These shares would be issued subject to the approval of Shareholders at the Extraordinary General Meeting to be held on 18 April 2024.

Following the capital infusion, the government’s holding in the oldest financial institution would increase. Currently, the Government of India holds a 70.32% per cent stake in IFCI.
The government had infused Rs 100 crore in 2022 in long-term infrastructure financier IFCI Ltd.

The Industrial Finance Corporation of India was set up by the government on 1 July, 1948, as the first Development Financial Institution in the country. IFCI was provided access to low-cost funds through the central bank’s Statutory Liquidity Ratio or SLR which in turn enabled it to provide loans and advances to corporate borrowers at concessional rates.

At 12:33 pm, the shares of IFCI Ltd. were trading flat at Rs 37.85 on NSE.