New Delhi: The government will pump in Rs100 crore through preference shares into IFCI, the country’s oldest term lending institution, to shore up its capital and enhance operations.
“The proposal for equity infusion has just been cleared by extraordinary general meeting held on Wednesday and we hope to get the fund infusion soon," IFCI managing director E.S. Rao told PTI.
The board approved equity shares aggregating upto Rs100 crore by way of preferential allotment to government.
Following the infusion, the government holding in the institution would increase from existing 55% to about 56%. It is to be noted that the government, after capital restructuring of IFCI, in December 2014 approved the infusion of Rs60 crore in IFCI to make it a state-owned firm by way of acquisition of preference shares from existing share holders.
For the third quarter ended December 2017, IFCI reported standalone net loss of Rs176.87 crore as against net loss of Rs45.17 crore for the October-December quarter of last fiscal.
However, the total income rose slightly to Rs655.53 crore during the quarter under review, as against Rs635.55 crore in the year-ago period.
The company has drawn up extensive plan to come back in to black, he said, adding, various measures are underway to achieve the objective, including focus on recovery process.
Recently, IFCI expressed interest to sell a total of 23 non-performing assets with outstanding principal amount of Rs1,160.65 crore. Some of these accounts include Ess Dee Aluminium Ltd, B S Ltd, Cooperative Spinning Mills Ltd, Jindal India Powertech Ltd, Venus Sugar Ltd and Nessa Leisure Ltd