In the second half of Fiscal Year 2024, IFCI reported a Rs 22 crore loss, with the first half losses grossing Rs 170 crore. This significantly impacted the company’s growth and financial health. The Indian Government now plans to invest Rs 500 crore into the company to improve its financial health. This move might grow the government’s stake in the company far beyond the current 71.72%. Earlier this year, IFCI raised Rs 500 crore by issuing equity shares to the government.
This capital allocation was formalised through the first supplementary Demand for Grants for 2024-45, passed by the Lok Sabha. Of the total amount, Rs 449.92 crore will be distributed from savings within the capital budget.
The Finance Ministry approved a restructuring plan to consolidate IFCI and its group organisation, including some legal aspects. This will include merging entities, such as Stockholding Corporation of India, IFCI Factors Ltd, and IFCI Infrastructure Development, into a unified entity. The company’s subsidiaries, Stockholding Document Management Services, and IFCI Venture Capital Funds will also be part of the consolidated structure.
IFCI was established in 1948 as a statutory corporation that, in 19956, was changed to a company under the Indian Company’s Act, 1956. The name of the company was changed to IFCI Ltd in October 1999. In 2015, the government raised IFCI’s stakes to over Rs 51 crore, making it a public-sector company.
