IFCI hits eight-month low, stock tanks 26% in six days

The stock tanked 26% in past six trading sessions after the government approved conversion of Rs 923 crore debentures into equity

Industrial finance Corporation of India (IFCI) has dipped 6% to Rs 25.70 its lowest level since January 2012 on the Bombay Stock Exchange.

The stock has tanked 26% in past six trading sessions from Rs 34.95 after the government approved conversion of Rs 923 crore debentures held by it in the company into equity, which will increase its stake in the financial institution to 55.57%.

The possibility of the government exercising the option to convert optionally convertible debentures into equity had derailed the process of selling 26% stake in the company to a strategic investor in 2007.

Meanwhile, according to media reports, the finance ministry has filed a petition with the registrar of companies against the company’s failure to issue debenture certificates worth Rs 523 crore.

 

The stock opened at Rs 27.20 and hit a high of Rs 27.25 on the BSE. A combined 14.21 million shares have changed hands on the counter so far on both the exchanges.