You are here: Home » Markets » News
Business Standard

IFCI plans to dilute stake in NSE, CCIL to raise funds for its operations

IFCI plans to sell a part stake, depending on the price that investors offers


Press Trust of India  |  New Delhi 

Once again, IFCI is in the eye of a storm

The country's oldest public sector financial institution proposes to further offload its stake in National Stock Exchange (NSE) as part of exercise to raise funds to fuel its operations, a top company official said.

Besides NSE, is also planning to dilute stakes in Clearing Corporation of India (CCIL).

"plans to reduce stake in some of the companies like NSE while plans are afoot to sell its stake in CCIL after getting regulatory approvals," IFCI MD E S Rao told PTI.

He further said IFCI plans to sell a part stake, depending on the price that investors offers.

Earlier this month, IFCI made partial disinvestment of its stake in NSE to the extent of about 0.02 per cent of the total number of equity shares of NSE, comprising of 1,00,000 number of equity shares at the rate of Rs 873.74 per equity share.

Besides, the company had sold 0.39 per cent stake in NSE in two parts -- 0.17 per cent for Rs 750 million and 0.22 per cent for Rs 939.3 million, as part of the planned stake sale in the exchange during this month itself.

The company is also trying to raise funds through divestments of its stake in CCIL where it has a 4 per cent stake.

Meanwhile, the government has pump in Rs 1 billion through preference shares into IFCI to shore up its capital and enhance operations.

Following the infusion, the government holding in the institution has increased from existing 55 per cent to about 56 per cent.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, March 31 2018. 00:00 IST