IFCI corrects on profit booking

IFCI tumbled 4.61% to Rs 25.85 at 15:18 IST on BSE on profit booking after the stock surged 24.88% in the preceding three sessions to Rs 27.10 on 1 July 2013 from a recent low of Rs 21.70 on 26 June 2013.

Meanwhile, the S&P BSE Sensex was down 117.62 points, or 0.60%, to 19,459.77.

On BSE, 25.59 lakh shares were traded in the counter as against an average daily volume of 22.30 lakh shares in the past one quarter.

The stock hit a high of Rs 27 and a low of Rs 25.75 so far during the day. The stock had hit a 52-week low of Rs 21.25 on 27 June 2013. The stock had hit a 52-week high of Rs 42.75 on 11 July 2012.

The stock had outperformed the market over the past one month till 1 July 2013, rising 6.27% compared with the Sensex's 0.93% fall. The scrip had, however, underperformed the market in past one quarter, sliding 0.73% as against Sensex's 3.78% rise.

The mid-cap company has an equity capital of Rs 1662.04 crore. Face value per share is Rs 10.

Recent gains in IFCI counter were triggered by the company's plan to foray into banking sector. IFCI announced after market hours on Thursday, 27 June 2013, that its board approved a proposal to submit an application to the Reserve Bank of India (RBI) for obtaining a banking license. Shares of IFCI surged 17.79% to Rs 26.15 on Friday, 28 June 2013.

Applicants seeking licenses to set up banks were required to submit their applications to the RBI by 1 July 2013.

IFCI's net profit fell 31.61% to Rs 149.94 crore on 8.7% decline in operating income to Rs 728.57 crore in Q4 March 2013 over Q4 March 2012.

IFCI's activities include project financing, infrastructure development, debt and equity underwriting & syndication, venture capital, stock broking & merchant banking, factoring, asset reconstruction, tourism finance, corporate and infrastructure advisory, technical consultancy and management education.

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