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IFCI aims to raise up to Rs 2,000 cr by selling non-core assets this fiscal

The fund infusion will help shore up IFCI's capital and enhance operations

Press Trust of India  |  New Delhi 

Once again, IFCI is in the eye of a storm

The country's oldest public sector financial institution expects to mobilise Rs 1,500-2,000 crore from sale of non-core assets, including its stake in the National Stock Exchange (NSE), during the current fiscal to fund business growth, a top company official said.

Besides, the company is looking at recovery of bad loans under the Insolvency and Bankruptcy Code.

"We have strategic investment in and Clearing Corporation of India (CCIL) which will give good money for business growth. We will also try to monetise our stake in some of our subsidiaries based on approval from government," Managing Director and CEO E S Rao told PTI.

Currently, holds 2.4 per cent stake in and 4 per cent in CCIL.

Regarding stake sale, he said "clarity has come from the regulator side. There is appetite in the market. So we will divest our stake in the NSE in tranches as per the business needs."

Rao said after SEBI passed its order on the NSE's co-location case, the road is clear for the stake sale provided market conditions are also supportive.

Real estate is the other segment from where the company will mobilse some funds, he added.

"We would like to realise Rs 100 crore from real estate sales this year. Already a committee has been formed. Wherever we have real estate properties we will try to monetise them either in form of sale, lease or joint development," he said.

"All these put together, we can get Rs 1,500 crore to Rs 2,000 crore from sale of assets depending on market condition and approvals," he added.

IFCI is also looking to divest part of its stake in its subsidiary Stock Holding Corporation of India (SHCIL).

SHCIL has been a profit making and dividend paying company right from its inception. As on date, IFCI holds 52.86 per cent equity shareholding in SHCIL.

In addition, Rao said the Budget has proposed Rs 200 crore capital infusion in the company where government holds 56.42 per cent stake.

The fund infusion will help shore up IFCI's capital and enhance operations.

First Published: Sun, July 21 2019. 14:30 IST