Stake sale process in IFCI irreversible: MD

Stake sale process in IFCI irreversible: MD


New Delhi: The strategic sale in IFCI is “irreversible" and the company is working toward rebuilding itself based on its core competencies, its CEO and managing director Atul Kumar Rai said on 21 September.

“Strategic sale of 26% (by IFCI) is irreversible... We will make it happen within indicative timeline," Rai told shareholders at the AGM here.

He said IFCI is exploring business models to reorient itself on the basis of its core competencies. He described IFCI’s core competencies as long-term financing, institutions building, besides its employees.

Later, Rai told PTI, “We are working out on various things for unlocking values and it would be reflected in September results, which will be available very soon."

But he didn’t give details on the business model the company was looking for.

To a query, he said the recent resignations of company chairman N Balasubramanian and director Vinayak Chatterjee would not affect the stake sale process.

The very fact that they quit on their own without anyone asking for their resignations shows that the stake sale process is transparent and fair, he said.

Balasubramanian and Chatterjee resigned from the board over the issue of their associations with bidders. Balasubramanian is advisor to Standard Chartered Bank, partner in a consortium which submitted expressions of interest.

Chatterjee is chairman, Feedback Ventures in which HDFC and IDFC have stake. Both companies have evinced interest in picking up 26% in IFCI, country’s oldest financial institution. IFCI received expressions of interest from 10 entities and will shortlist a few by 25 September.