Multibagger PSU stock IFCI rallied over 9% in intraday trade on Monday, July 14, defying weak sentiment in the Indian equity market, after the company’s board recommended to the Government of India (GOI) a proposal for approval of the consolidation of the group.
While the company has already received an in-principle approval from the government for the consolidation of the IFCI Group in November 2024, the company today recommended the details on the proposed businesses to be merged following the evaluation of the Transaction Advisor.
IFCI Consolidation Details
As part of its proposal, PSU stock IFCI has suggested merging at the company level, a merger of the broking business and suggested continuation of certain entities as direct subsidiaries.
Merger 1: Consolidation at company level
Under this, IFCI has proposed the consolidation of StockHolding Corporation India Limited, IFCI Factors Limited, IFCI Infrastructure Development Limited and IIDL Realtors Private Limited with TFCT Limited, the listed Entity.
The consolidated IFCI is proposed to remain as an NBFC and will continue to explore opportunities in custodial services, e-stamping, advisory etc.
Merger 2: Consolidation of Broking Business
Consolidation of StockHolding Services Limited, IFCI Financial Services Limited, IFIN Commodities Limited, IFIN Credit Limited and IFIN Securities Finance Limited into a single entity, which will be a direct subsidiary of IFCI Limited i.e. the consolidated listed entity mentioned above.
Entities to continue as direct subsidiaries
StockHolding Document Management Services Limited, StockHolding Securities IFSC Limited, IFCI Venture Capital Funds Limited and MPCON Limited shall be direct subsidiaries of IFCI Limited i.e. the consolidated listed entity.
Additionally, the company board also recommended divestment of IFCI’s shareholding in MPCON Limited, a direct subsidiary of IFCI Limited, to the Government of India for approval.
IFCI share price trend
IFCI share price surged over 9% to hit the day’s high of ₹66.35 apiece on the BSE. The PSU stock opened at ₹60.61 and hit the day’s low of ₹59.89 today.
The daily average volume on BSE for IFCI shares was also higher, as the total traded quantity touched 21.60 lakh shares as against the two-week average of 9.73 lakh shares.
While IFCI share price has lost 10% in the last one year, it has zoomed 54% in three months. Meanwhile, the scrip has offered multibagger gains on a longer time frame, zooming 400% in two years and 817% in five years.
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