Ifci Not Pare Stake In Icra, Factoring Firm

Financial institution IFCI Ltd has decided against diluting its holding in Icra, in which it holds 12 per cent, and Foremost Factors Ltd, an authorised dealer for export factoring.

The decision was taken by the board recently. IFCI had reduced its holding in Icra by 9 per cent last year, in favour of Moody's Investor Services, when it was facing a liquidity crunch. Moody's is now the largest shareholder in the rating agency.

Sources said the institution is against offloading its equity stake as it is gradually moving towards a recovery path and the present problems are expected to be over in few months.

IFCI is the biggest shareholder with 36.25 per cent in Foremost Factors Ltd, which has a 10 per cent share of the export factoring business in India.

BankAm is the second largest shareholder with 26. 25 per cent and Mohan group, Nations Overseas Corporation of the US and ICDS group, together hold 33.75 per cent.

Nations Overseas Corporation wanted to sell 52.5 lakh shares that it holds in the company which registered a profit after tax of about Rs 1.5 crore at the end of the previous fiscal. During the nine months ended December 2001, the company recorded a turnover of Rs 106 crore.