IFCI Factors claims govt status, post share acquisition

With IFCI becoming a government company, its wholly-owned subsidiary IFCI Factors today claimed to have become a government entity, too.
According to the communication from the Finance Ministry, the government has acquired 6 crore preference shares of Rs 10 each of IFCI from certain banks and consequently increased its holding from the present 47.93 per cent to 51.04 per cent of the paid-up share capital of the company, IFCI Factors said in a BSE filing today.
"IFCI Factors, being a subsidiary company of IFCI Ltd, has also become a government company w.E.F. April 7, 2015," it said.
The Industrial Finance Corporation of India (IFCI) was set up by the government on July 1, 1948, as the first development financial institution in the country.

Thanks to the introduction of statutory liquidity ratio (SLR), IFCI got access to low-cost funds, which helped the corporation provide loans and advances to corporate borrowers at concessional rates.