Mumbai, April 8 (IANS) With the central government increasing its holding in IFCI Ltd. to 51.04 percent from 47.93 percent after acquiring six crore preference shares, the financial firm has become a state-owned company.
“The government of India has acquired 6,00,00,000 preference shares of Rs.10 each of the company from certain scheduled commercial banks, and has consequently increased its holding from present 47.93 percent to 51.04 percent of the paid-up share capital,” the company said in a regulatory filing with the National Stock Exchange.
The share takeover has resulted in the Industrial Finance Corporation of India Ltd. becoming a government-owned company as per the provisions of Section 2(45) of the Companies Act, 2013.
Set up in 1948 as the first development financial institution in India, the main objective of IFCI is to provide medium and long term financial assistance to large scale industrial undertakings, NBFCs, manufacturing and infrastructure companies.