State-owned IFCI on Tuesday said its board has approved a proposal for raising up to Rs 500 crore capital through the issuance of equity shares to the government.
"12,39,77,188 number of Equity Shares will be issued for an amount aggregating up to Rs 500 crore," IFCI said in a regulatory filing.
These shares would be issued subject to the approval of Shareholders at the Extraordinary General Meeting to be held on Apr. 18, 2024, it said.
Following the capital infusion, the government holding in the oldest financial institution would increase. Currently, the Government of India holds 70.32% stake in IFCI.
The government had infused Rs 100 crore in 2022 in long-term infrastructure financier IFCI Ltd.
The Industrial Finance Corporation of India was set up by the government on Jul. 1, 1948 as the first Development Financial Institution in the country.
IFCI was provided access to low-cost funds through the central bank's Statutory Liquidity Ratio or SLR which in turn enabled it to provide loans and advances to corporate borrowers at concessional rates.
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