IFCI shares fell 16.5 per cent on Friday to 29.25 on BSE after the government approved conversion of Rs 923 crore of debentures held by it in IFCI into equity.
IFCI shares also were also among the highest traded shares on the BSE on Friday with 21,890,052 shares changing hands.
Following the conversion, the government's stake in IFCI will rise to 55.57 per cent and together with holdings of banks and FIIs the government's total shareholding will rise to 68.31 per cent.
Since 2001 the government had been
giving funds to IFCI to tide over the financial problems. It initially gave Rs 400 crore in the form of 20-year OCDs.
Later in 2002-03, as part of the financial restructuring package of Rs 5,220 crore, the government gave IFCI Rs 523 crore as loan in the form of OCDs.
However, the government stopped releasing funds after IFCI started making profits. (With Agency Inputs)
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Special 
