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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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.

Next Story
Products

EUROBOND Expands NABL Accreditation to 51 Testing Parameters

EUROBOND, the flagship brand of Euro Panel Products, has expanded the National Accreditation Board for Testing and Calibration Laboratories (NABL) accreditation of its in-house laboratory from 16 to 51 mechanical and chemical testing parameters, making it the only Indian aluminium composite panel (ACP) manufacturer with accreditation covering such an extensive testing scope.The expanded accreditation enables the company to independently test coils, coatings, cores, aluminium composite panels (ACP) and metal composite panels (MCP) in accordance with international standards, including IS, ASTM, ..

Next Story
Real Estate

Dubai Property Sales Rise as Rental Activity Hits Record High

Dubai's real estate market recorded its highest-ever monthly rental activity in June, while property sales rose sharply in both value and volume, reflecting sustained demand across the emirate's residential and commercial sectors.According to a market analysis by fäm Properties based on DXBinteract data, 40,022 rental contracts were registered during the month, the highest monthly total on record. New rental contracts increased 48.6 per cent year on year to 19,245, while renewals rose 28.5 per cent to 20,777.Property sales reached 13,933 transactions worth AED33.2 billion in June, representin..

Next Story
Real Estate

Isprava Partners Courtside to Launch Luxury Padel Experience

Luxury home developer Isprava has partnered with Courtside, Mumbai's first padel social club, to launch The Isprava Court, integrating its design-led lifestyle proposition with one of the city's emerging sporting destinations.Located on the rooftop of Atria Mall in Worli, Courtside spans 20,000 sq ft and combines padel, wellness, hospitality and community experiences. Since opening in February 2026, the venue has positioned itself as a social hub for sports and lifestyle enthusiasts.The Isprava Court features curated brand elements, including bespoke court branding, branded nets, towels and ac..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement