The buzz is back in India's oldest financial institution IFCI as the finance ministry has again revived the process of selling stake in IFCI to strategic or financial investors.
The IFCI stock surged over 4.5 per cent in Wednesday’s trade on multiple block deals.
NDTV has learnt that the finance ministry has asked IFCI's top brass to start the process of stake sale and here are the options before IFCI.
IFCI may sell 26 per cent stake to strategic investor and it might alternatively hive off 10-15 per cent stake to a financial investor.
The IFCI board is to meet on April 29 to consider stake sale.
About four months ago the process to sell stake in IFCI fell through after the government rejected a bid from a consortium of Sterlite and Morgan Stanley.
To make look IFCI's balance sheet better this year's budget has a Rs 433 crore restructuring package.
The IFCI stock value almost halved since the deal was called off last year.
Now to woo investors IFCI has announced an ambitious VRS plan.
IFCI has maintained that it is seeking strong partner either from an Indian entity or from overseas, which can add value to the company and not just a financial shareholder.
So, now everyone is holding their breath to see if the stake sale and restructuring goes through.
Source: NDTV