IFCI surges on heavy volumes

IFCI has surged 17% to Rs 33.10 on back of heavy volumes on the counter. As many as a combined 47.92 million shares, representing 6.5% of total equity of the company have changed hands on the counter in early noon deals against an average sub 20 million shares that were traded daily in past two weeks on the NSE and BSE.

The stock of the financial institution has recovered more than 32% from its recent low of Rs 25 touched on September 6. Earlier, the stock tanked 29% from Rs 35 on August 23, after the government decided to make IFCI as government-owned company by converting Rs 923 crore worth of optionally convertible debentures (OCDs) it holds in the company into equity shares at par.

“The Union government’s proposed acquisition of institutional lender is unlikely to be smooth, as the unprecedented move might require multiple regulatory approvals including the Securities and Exchange Board of India (SEBI) as IFCI is a listed company,” the media report suggests.