IFCI gains after government's nod for issue of bonds

IFCI rose 2.84% to Rs 25.35 at 13:01 IST on BSE after the company said that the Government of India has authorized the company to issue tax free, secured, redeemable, non-convertible bonds upto to Rs 430 crore during the current financial year.

The announcement was made during trading hours today, 27 March 2014.

Meanwhile, the S&P BSE Sensex was up 94.71 points or 0.43% at 22,190.01.

On BSE, so far 6.64 lakh shares were traded in the counter as against average daily volume of 10.37 lakh shares in the past one quarter.

The stock hit high of Rs 25.55 and a low of Rs 24.70 so far during the day. The stock had hit a 52-week high of Rs 32.05 on 8 May 2013. The stock had hit a 52-week low of Rs 17.85 on 28 August 2013.

The stock had outperformed the market over the past one month till 26 March 2014, surging 6.48% compared with the Sensex's 5.28% rise. The scrip had, however, underperformed the market in past one quarter, sliding 4.09% as against Sensex's 4.84% rise.

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

IFCI said that Government of India, Ministry of Finance, Department of Revenue, CBDT has vide Notification dated 26 March 2014 has authorized IFCI to issue during financial year 2013-14, tax free, secured, redeemable, non-convertible bonds upto to Rs 430 crore, as per the terms and conditions of the notification referred to above.

IFCI's net profit surged 86.6% to Rs 142.39 crore on 24% growth in total income to Rs 803.06 crore in Q3 December 2013 over Q3 December 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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