IFCI to turn PSU as govt may covert debt to equity

Stock Market | admin | November 29, 2011 at 12:13 am

Cash strapped non-banking financial company IFCI” data-scaytid=”1″>IFCI Ltd may soon become a public sector company as the government plans to convert its loans into equity. Post conversion the government may hold 23% in the company, of which LIC and PSU banks are currently holding 29%.

Foreign institutional investors have cut their stake in the company by 5% and currently hold 14.95% against 19.45% (in June).

According to reports, following many complaints against IFCI’s functional and financial mismanagement, government feels that the company should be converted into a state-run firm for better functioning. However, a formal instruction is yet to be delivered in this regard.

Financial institutions like Life Insurance Corporation of India, General Insurance Corporation, IDBI Bank and Punjab National Bank have been told not to sell their IFCI stake.

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