Ifb Capital To Be Merged With Ifb Finance

Bijon Nag-promoted IFB Venture Capital Finance Ltd will be merged with another group finance company IFB Finance Ltd. A decision was taken by the board of directors of the two companies in a meeting earlier this month. The swap exchange ratio has been fixed at 4.5:1.

Bijon Nag is currently the chairman of both the finance companies. The merger of the two companies was on the cards for quite some time and IFB has appointed SBI Capital Markets Ltd to work out a restructuring scheme. The fate of IFB Securities, another IFB finance firm ,is likely to be decided later.

 

IFB Finance, the largest of the group's finance companies, had announced a capital adequacy ratio 17.57 per cent on June 30, 1997, signifying a healthy asset base. The standard assets of the company stood at 95.02 per cent while the aggregated amount of fixed deposits stood at Rs 42.61 crore accounting for 40 per cent of the sources of fund.

IFB Finance has posted a total income of Rs 22.66 crore.

IFB Venture is a much smaller arm which posted a total income of Rs 1 crore for the year ended June 30, 1997.