Government Approves Rs 500 Crore Boost for IFCI

The government has sanctioned a Rs 500 crore capital infusion into IFCI via the preferential issue of shares, aimed at increasing its ownership stake beyond 71.72%. This move, authorized for FY 2024-25, aligns with a broader consolidation plan involving mergers with StockHolding Corporation and other IFCI subsidiaries.

In a strategic financial maneuver, the Indian government has endorsed a Rs 500 crore capital infusion into the Industrial Finance Corporation of India (IFCI) through a preferential issue of shares.

This decision, revealed through a regulatory filing, is scheduled to be discussed by the board of directors on January 29, 2025, pending several layers of approval including from shareholders and stock exchanges. The capital injection aligns with the government's broader consolidation strategy, under which it aims to integrate IFCI Limited with the StockHolding Corporation of India along with other group entities.

With the government's shareholding in IFCI expected to rise from the current 71.72%, this capital infusion was enabled through the first Supplementary Demand for Grants for 2024-25, passed in the Lok Sabha in December. Established on July 1, 1948, IFCI plays a pivotal role as India's inaugural development financial institution.

(With inputs from agencies.)