IFCI Ltd. said the Indian government on Friday restructured the board by nominating two new directors in the wake of its raising stake in the domestic financial institution (DFI) to 55.57 percent.
The government has nominated two directors, namely, Anurag Jain, Joint Secretary, Ministry of Finance, Department of Financial Services, in place of Sanjeev Kumar Jindal, Director, and V.K. Chopra, Deputy Secretary, on the IFCI board.
Four existing members already stepped down from the board, while further changes are likely soon. They are Sanjeev Kumar Jindal, Shobhit Mahajan, Atul Ashok Galande and S. Shabbeer Pasha.
In August, the Cabinet had approved the conversion of debentures worth R. 923 crore that the government held in IFCI into equity, following which its stake in IFCI has gone up to 55.57 percent.
Since 2001, the government had been giving funds to IFCI to help it tide over financial problems. Initially, it gave Rs.400 crore in the form of 20-year optionally convertible debentures and in 2002-03 it extended another Rs.523 crore as loan in the form of OCDs as part of the financial restructuring package of Rs.5,220 crore. However, the government stopped releasing funds after IFCI started making profits.
The decision to go ahead with the conversion of OCDs into equity was taken by the Committee of Secretaries and the government had also taken exemption from SEBI for application of the takeover code.
At the BSE, IFCI closed Friday’s trading at Rs.38.15, up 11.39 percent from the previous close.
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by RTT Staff Writer
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