IFCI surges as Government recasts company board

IFCI has surged 9% to Rs 37.30 on back of heavy volumes after the company said that the government restructured the board of financial institution by nominating two new directors.

The stock opened at Rs 34.20 and hit a high of Rs 37.35 on the NSE. As many as combined 55.11 million shares have already changed hands on the counter so far against an average sub 11 million shares that were traded daily in past two weeks.

“Government of India has nominated Shri Anurag Jain, Joint Secretary, Ministry of Finance, Department of Financial Services on the board of the company, in place of Shri Sanjeev Kumar Jindal, Director and Shri V. K. Chopra, Deputy Secretary,” IFCI said in a statement.

Last month, the government has increased its holding stake in the domestic financial institution (DFI) to 55.57% by converting debentures worth Rs 923 crore that it held in IFCI into equity shares.

Further, Prof. Shobhit Mahajan, Shri AtuI Ashok Galande and Shri S. Shabbeer Pasha have resigned from the board of the company, it added.