IFCI gets three bids for 26 strategic stake

The process of inducting a strategic partner that started in August is expected to complete in January next year. As many as 10 suitors had expressed preliminary interest in buying the stake. However, only eight were shortlisted by IFCI board with Kotak Mahindra Bank and Newbridge Capital exiting the race. Of these eight, only four undertook due diligence of IFCI.The induction of a strategic partner is aimed at bringing in financial resources and management expertise without diluting the basic character of IFCI as a development financial entity, IFCI Chief Executive Officer Atul Rai said. IFCI shares closed at Rs 113.65, up 1.1 per cent, on the Bombay Stock Exchange today.

Meanwhile, it is believed that IFCI has fixed Rs 107 per share for converting bonds issued to public sector banks and insurance companies into equity. IFCI has fixed December 17, as the relevant date for determining the price of shares to be issued upon conversion of bonds given to public sector banks and insurance companies. Earlier, the institution had decided to convert all Rs 900 crore optionally convertible bonds issued to PSU banks into equity. IFCI also decided to partly convert Rs 579-crore worth of bonds issued to public sector insurance companies.