IFCI jumps over 4% on TFCI stake buying buzz

Non-banking financial company IFCI today jumped over four per cent in the early trade on BSE on reports that it was looking to buy majority stake in Tourism Finance Corporation of India (TFCI).

Buoyed by the report, IFCI share opened on a robust note and soared by 4.34 per cent to an early-high of Rs 63.65 on the Bombay Stock Exchange.

In a similar fashion, the scrip witnessed a smart start on the National Stock Exchange and advanced by 4.33 per cent to Rs 63.75 in the morning session.

Meanwhile, the 30-share benchmark Sensex was also trading firm at 19,683.51, up by 162.26 points from the previous close.

According to media reports, IFCI that at present is the largest shareholder with 33.04 per cent stake in TFCI, is aspiring for a majority stake to gain management control in the company. It is planning to induct five new members and replace one existing member on TFCI’s board.

The reports added that TFCI on Nov 25 had rejected IFCI proposal to replace its chairman and managing director.

Besides this, there are also reports about IFCI planning to bring initial public offer (IPO) of its subsidiary IFCI Factors by July 2011.