Shares of IFCI Ltd skyrocketed 14.7%, reaching an intraday high of Rs 66.79 on the nSE, after the board of directors of the firm approved the combination of the IFCI Group companies.

In its regulatory filing, the company said, “The board of IFCI at its Meeting held on November 22, 2024, has considered and accorded in-principle approval to consider consolidation of IFCI Group.”

The action was taken in response to a message the Ministry of Finance’s Department of Financial Services (DFS) sent to the company asking it to think about “consolidation of IFCI Group.” 

According to the filing, VFCI Infrastructure Development Ltd, IIDL Realtors Ltd, StockHolding Corporation of India Ltd, and IFCI Factors Ltd will all merge with IFCI Ltd at the corporate level.

Additionally, a single company that is a direct subsidiary of the consolidated listed firm will be formed by the merger of StockHolding Services Ltd, IFCI Financial Services Ltd, IFIN Commodities Ltd, and IFIN Credit Ltd.

Furthermore, the consolidated listed business will include direct subsidiaries, including StockHolding Document Management Services Ltd, StockHolding Securities IFSC Ltd, IFIN Securities Finance Ltd, IFCI Venture Capital Funds Ltd, and MPCON Ltd.

The Eastern Railway IFCI is a development finance organisation that was founded in 1948. It was established by the Indian government to give enterprises long-term financial support, promoting the expansion of infrastructure, manufacturing, and other important sectors. 

By providing a variety of financial services, such as working capital, corporate debt restructuring, and term loans, IFCI has contributed significantly to the advancement of industrial development over the years.

Although the government held 100% of IFCI at first, it has since reduced its ownership and is now a publicly traded company. Notwithstanding these developments, IFCI continues to play a vital role in India’s economy by providing financial resources and strategic direction to businesses in the public and private sectors, promoting industrial development and modernisation. 

IFCI shares have increased 137% over the last year, while the Sensex has increased 20%.

At 12:29 pm, the shares of IFCI were trading 10.33% higher at Rs 63.99 on NSE.

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