IFCI Stock Surges After Board Approves Merger Of Group Companies
Other group companies like StockHolding Document Management Services Ltd. and IFCI Venture Capital Funds Ltd. will continue as direct subsidiaries of the newly consolidated entity.
Share price of IFCI Ltd. soared by over 15% after the company's board approved the merger and consolidation of several entities within its group. The move is aimed at streamlining operations and enhancing operational efficiency.
The approval, confirmed during a board meeting on Nov. 22, comes after IFCI received in-principle approval from the Department of Financial Services, Ministry of Finance. The consolidation plan involves the merger of StockHolding Corp. of India, IFCI Factors Ltd., VFCI Infrastructure Development Ltd., and IIDL Realtors Ltd. with IFCI Ltd.—the listed entity.
In addition, a number of subsidiary companies, including StockHolding Services Ltd., IFCI Financial Services Ltd., IFIN Commodities Ltd., and IFIN Credit Ltd., are set to consolidate into a single entity. This new entity will be a direct subsidiary of the consolidated IFCI entity. Other group companies like StockHolding Document Management Services Ltd. and IFCI Venture Capital Funds Ltd. will continue as direct subsidiaries of the newly consolidated entity.
The DFS has directed IFCI to move forward with the consolidation process in compliance with applicable laws and regulations. The approval of this consolidation is seen as a significant step for IFCI, as it seeks to strengthen its business operations and create greater synergies across its group of companies.
The announcement has generated a strong positive market response, reflected in the surge in IFCI’s stock price.
IFCI Share Price Today
The scrip rose as much as 15.2% to Rs 66.79 apiece. It pared gains to trade 10.2% higher at Rs 63.90 apiece, as of 01:14 p.m. This compares to a 1.20% advance in the NSE Nifty 50.
It has risen 158.2%% in the last 12 months. Total traded volume so far in the day stood at 5.2 times its 30-day average. The relative strength index was at 55.9.
