+
Government to Inject Rs 5 Bn in IFCI to Boost Financial Health
ECONOMY & POLICY

Government to Inject Rs 5 Bn in IFCI to Boost Financial Health

The government has decided to inject Rs 5 billion into the state-owned IFCI to enhance its financial stability ahead of the company's proposed restructuring and integration into a larger group.

With this capital infusion, the government's stake in the company is expected to rise from the current 71.72 per cent as of September 2024.

This capital infusion was approved through the passage of the first Supplementary Demand for Grants for 2024-25 in the Lok Sabha last week.

The Supplementary Demand for Grants for 2024-25 allocated an additional Rs 4.99 billion for the 'Subscription to the Share Capital of Industrial Finance Corporation of India (IFCI)'.

The Supplementary Demand for Grants also noted that considering savings of Rs 500.07 million in the same section of the grant, the remaining Rs 4.49 billion will be met from the surrender of savings in the capital section of Demand No.30-DEA, and this would not result in any additional cash outflow.

Earlier in the year, IFCI had raised Rs 5 billion by issuing equity shares to the government.

The Industrial Finance Corporation of India was established by the government on July 1, 1948, as the first Development Financial Institution in India.

For the second quarter ending in September 2024, IFCI reported a loss of Rs 220 million, and for the first half of FY24, the company recorded a loss of Rs 1.70 billion.

As part of its revival and restructuring, the Department of Financial Services (DFS), Ministry of Finance, approved in principle last month the 'Consolidation of IFCI Group,' which involves the merger or amalgamation of IFCI with StockHolding Corporation of India and other group companies.

The proposed plan includes merging StockHolding Corporation of India, IFCI Factors, IFCI Infrastructure Development, and IIDL Realtors with IFCI. Additionally, StockHolding Services, IFCI Financial Services, IFIN Commodities, and IFIN Credit will be consolidated into a single entity, which will become a direct subsidiary of the newly formed consolidated listed entity.

The government has decided to inject Rs 5 billion into the state-owned IFCI to enhance its financial stability ahead of the company's proposed restructuring and integration into a larger group. With this capital infusion, the government's stake in the company is expected to rise from the current 71.72 per cent as of September 2024. This capital infusion was approved through the passage of the first Supplementary Demand for Grants for 2024-25 in the Lok Sabha last week. The Supplementary Demand for Grants for 2024-25 allocated an additional Rs 4.99 billion for the 'Subscription to the Share Capital of Industrial Finance Corporation of India (IFCI)'. The Supplementary Demand for Grants also noted that considering savings of Rs 500.07 million in the same section of the grant, the remaining Rs 4.49 billion will be met from the surrender of savings in the capital section of Demand No.30-DEA, and this would not result in any additional cash outflow. Earlier in the year, IFCI had raised Rs 5 billion by issuing equity shares to the government. The Industrial Finance Corporation of India was established by the government on July 1, 1948, as the first Development Financial Institution in India. For the second quarter ending in September 2024, IFCI reported a loss of Rs 220 million, and for the first half of FY24, the company recorded a loss of Rs 1.70 billion. As part of its revival and restructuring, the Department of Financial Services (DFS), Ministry of Finance, approved in principle last month the 'Consolidation of IFCI Group,' which involves the merger or amalgamation of IFCI with StockHolding Corporation of India and other group companies. The proposed plan includes merging StockHolding Corporation of India, IFCI Factors, IFCI Infrastructure Development, and IIDL Realtors with IFCI. Additionally, StockHolding Services, IFCI Financial Services, IFIN Commodities, and IFIN Credit will be consolidated into a single entity, which will become a direct subsidiary of the newly formed consolidated listed entity.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code