IFCI dips as board nod for conversion of debentures

The board has decided to proceed with the conversion of optionally convertible debentures held by the Central Government

IFCI has dipped over 6% at Rs 29 after the board of directors of the company at its meeting held today, has decided to proceed with the conversion of optionally convertible debentures held by the Central Government for Rs 400 crore and financial assistance of Rs 523 crore.

Last week, the Securities and Exchange Board of India (Sebi) allowed the government to acquire control without making an open offer.

The government proposes to convert IFCI debentures worth Rs 923 crore in to equity shares at par. The move will give the government a controlling stake of 55.57% in the company.

The stock opened at Rs 30.70 and hit a low of Rs 28.90 on the NSE. A combined 28.69 million shares have changed hands on the counter so far on both the exchanges.