IFCI

IFCI gained 2.17% to Rs 63.65 at 12:31 IST on BSE on reports Reliance Industries and Standard Chartered Bank have co-bid for a strategic stake in the state-run financial institution.

The stock hit a high of Rs 64.90 and a low of Rs 63 so far during the day. The stock had a 52-week high of Rs 121.20 on 17 December 2007 and a 52-week low of Rs 36.70 on 24 March 2008.

The company’s current equity is Rs 763.73 crore. Face value per share is Rs 10.

IFCI’s board of directors will now meet on 12 June 2008 to take a further view after yesterday’s 29 May 2008, meeting to consider induction of strategic investor and optionally convertible debentures held by Government of India. Ahead of the announcement, the IFCI stock jumped 6.50% to Rs 62.30 on Thursday, 29 May 2008.

This is the second time IFCI is making an effort to induct an investor. It may be recalled that in December 2007, IFCI's board decided to call-off the planned sale of a 26% equity stake as the Sterlite-Morgan Stanley consortium sought management control of the state-run firm.

The other issue for failure in strategic stake sale was the lack of clarity on the debentures issued to the government. The government owns convertible debentures of Rs 923 crore in IFCI that can be converted into equity shares at later date. Upon conversion, the government will hold around 15% stake in the Delhi-headquartered entity.

IFCI reported net loss of Rs 42.52 crore in Q4 March 2008 as compared to net profit of Rs 668.43 crore in Q4 March 2007. The company’s operating income declined 32.8% to Rs 830.10 crore in Q4 March 2008 over Q4 March 2007.

IFCI's principal activities are project financing, providing financial services and comprehensive corporate advisory services. The company also provides equipment finance, equipment credit, equipment leasing, corporate loans, short-term loans and working capital loans to meet the specific needs of corporate.