The government will pump in Rs 100 crore through preference shares into IFCI, the country's oldest term lending institution, to shore up its capital and enhance operations.
"The proposal for equity infusion has just been cleared by Extraordinary General Meeting held yesterday and we hope to get the fund infusion soon," IFCI Managing Director E S Rao told PTI.
The board approved equity shares aggregating upto Rs 100 crore by way of preferential allotment to government.
Following the infusion, the government holding in the institution would increase from existing 55 per cent to about 56 per cent.
It is to be noted that the government, after capital restructuring of IFCI, in December 2014 approved the infusion of Rs 60 crore in IFCI to make it a state-owned firm by way of acquisition of preference shares from existing share holders.
For the third quarter ended December 2017, IFCI reported standalone net loss of Rs 176.87 crore as against net loss of Rs 45.17 crore for the October-December quarter of last fiscal.
However, the total income rose slightly to Rs 655.53 crore during the quarter under review, as against Rs 635.55 crore in the year-ago period.
The company has drawn up extensive plan to come back in to black, he said, adding, various measures are underway to achieve the objective, including focus on recovery process.
Recently, IFCI expressed interest to sell a total of 23 non-performing assets with outstanding principal amount of Rs 1,160.65 crore.
Some of these accounts include Ess Dee Aluminium Ltd, B S Ltd, Cooperative Spinning Mills Ltd, Jindal India Powertech Ltd, Venus Sugar Ltd and Nessa Leisure Ltd.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)