Union Cabinet approved hike of government stake in IFCI to 51 percent
Union Cabinet approved the hike of government stake in Industrial Finance Corporation of India (IFCI) ltd to 51 percent.
The increase in government stake will be through infusion of 60 crore rupees by way of acquisition of preference shares from existing share holders. As a result, India’s oldest financial institution IFCI will now become a government owned company.
The current shareholding of Union government in IFCI after inclusion of the preference share capital was 47.93 percent. Therefore, IFCI was not a Government Company under section 2(45) of the Companies Act, 2013.
About Industrial Finance Corporation of India
IFCI was set up in 1948 and it is a statutory corporation under the Industrial Finance Corporation Act, 1948. The Act was repealed by the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 and was registered under the Companies Act, 1956.
IFCI's total paid-up capital of about 1925 crore rupees comprised 1662 crore rupees as equity capital and nearly 264 crore rupees as preference share capital.