FM annuls appointment of consultant for IFCI revamp

Finance Minister Pranab Mukherjee has annulled the appointment of consultant to advise on the revamp of IFCI Ltd, according to a person familiar with the development.

“Finance Minister Pranab Mukherjee is of the opinion that there is no need to appoint consultant to advice on IFCI rejig,” the source said on Monday.

In September, the government had appointed Boston Consulting Group to advise on revamping the financial institution. The consultant was given three months to submit its report. It was also required to advise on IFCI’s plans for a banking foray and on government’s debenture holding.

The government, which owns around 14 per cent stake in IFCI through a clutch of state-owned insurance companies, holds Rs 523 crore worth of IFCI’s optionally convertible debentures. If these debentures are converted into equity, the government will have a direct equity holding in IFCI.

Shares of IFCI closed at Rs 62.35, up 4.6 per cent from Thursday’s close on the Bombay Stock Exchange.