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The first phase will involve consolidation at the company level (Merger 1) while the other phase will involve consolidation of broking business (Merger 2).
Merger 1: Consolidation at company level
In this, the consolidation of StockHolding Corporation of India Limited, IFCI Factors Limited, IFCI Infrastructure Development Limited and IIDL Realtors Private Limited with IFCI Limited will happen.
The consolidated entity IFCI is proposed to remain as an NBFC and will continue to explore opportunities in custodial services, e-stamping, advisory etc. along with lending, the company filing said.
Merger 2: Consolidation of broking business entities/some of their subsidiaries
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.
The board further recommended divestment of IFCI’s shareholding in MPCON Limited, a direct subsidiary of IFCI Limited to the Government of India for approval.
The above consolidation and divestment will be subject to all applicable regulatory and statutory approvals.Following the announcement, IFCI shares jumped 9% to hit the day’s high of Rs 66.33 on the NSE amid significant volumes as nearly 2.2 crore shares changed hands around 2 pm.Read More: Reliance Infra shares rally 4% after 3-notch credit rating upgrade
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