The Department of Financial Services (DFS) under the Finance Ministry has given its in-principle approval to proceed with the consolidation of the IFCI Group. This proposed consolidation involves the merger or amalgamation of IFCI Limited, StockHolding Corporation of India Limited, and other group companies under IFCI Limited. IFCI, previously Industrial Finance Corporation of India, is a development finance institution under the ownership of Ministry of Finance, Government of India.
Next Steps and Board Approval
The Finance Ministry has directed IFCI Limited to initiate necessary actions and begin the process in compliance with applicable laws, rules, and regulations. In response, the IFCI Limited board, in a meeting held on Friday, granted in-principle approval to commence the consolidation process, as disclosed in filings to the stock exchanges.
Consolidation Plan Overview
The proposed restructuring will bring several group entities under the consolidated IFCI umbrella, including:
- Entities to Be Merged with IFCI Limited:
- StockHolding Corporation of India Limited
- IFCI Factors Limited
- IFCI Infrastructure Development Ltd
- IIDL Realtors Limited
- Subsidiaries of the Consolidated Entity:
- StockHolding Services Limited
- IFCI Financial Services Limited
- IFIN Commodities Limited
- IFIN Credit Limited
Other group entities, such as StockHolding Document Management Services Limited, StockHolding Securities IFSC Limited, IFIN Securities Finance Limited, IFCI Venture Capital Funds Limited, and MPCON, will also operate as direct subsidiaries of the consolidated listed entity.
Government Investment and Market Performance
In April 2024, the government infused ₹500 crore into IFCI Limited, acquiring 12.4 crore shares at ₹40.33 per share. On Friday, IFCI shares closed at ₹58.02 on the BSE, reflecting positive market sentiment.
Financial Highlights
- September Quarter FY2024: IFCI reported a consolidated net profit of ₹185 crore, marking a 7% increase from ₹173 crore in the same quarter last year.
- June Quarter FY2024: The company had recorded a consolidated net loss of ₹88 crore.
The proposed consolidation is seen as a significant step toward streamlining operations and improving the financial health of the IFCI Group.
About IFCI
IFCI, a Non-Banking Financial Company (NBFC) in the public sector, was established in 1948 as a statutory corporation and is now a listed entity on both the BSE and NSE. With six subsidiaries and one associate company, IFCI has been a cornerstone in fostering the growth of key industries and market intermediaries across India.
Contributions to Industry and Development
Over its 70-year journey, IFCI has played a critical role in establishing renowned institutions in diverse sectors, including stock exchanges, credit rating agencies, entrepreneurship development organizations, consultancy firms, and educational and skill development institutes nationwide.
Diverse Financial Support
IFCI provides financial assistance for a broad range of projects spanning industries such as:
- Infrastructure (airports, roads, telecom, power)
- Real estate
- Manufacturing
- Services
- Allied industries
Notable Projects
IFCI has been instrumental in funding large-scale projects that have significantly contributed to India’s economic growth. Some of its notable contributions include:
- Adani Mundra Ports
- GMR Goa International Airport
- Salasar Highways
- NRSS Transmission
- Raichur Power Corporation
Through its commitment to supporting industrial and infrastructure development, IFCI continues to be a key player in driving India’s economic progress.
