The board of directors of IFCI has approved a sweeping consolidation of its group companies following the government’s in-principle clearance in November. The move, aimed at streamlining operations and enhancing growth prospects, was finalised at the board meeting held on Monday, the company informed the stock exchanges.
Shares of IFCI on Monday closed up 3.5% at Rs 62.85 on the National Stock Exchange.
At the company level, several subsidiaries, including StockHolding Corporation of India, IFCI Factors, IFCI Infrastructure Development and IIDL Realtors, will be merged with IFCI. IFCI will continue to operate as a non-bank lender and plans to expand its footprint in custodial services, e-stamping, advisory and lending.
In a parallel exercise, a business-level consolidation will bring together entities like StockHolding Services Business, IFCI Financial Services and several IFIN subsidiaries into a single unit that will function as a direct subsidiary of the consolidated IFCI. This restructuring is expected to enhance operational efficiency across verticals.
Other group entities, including StockHolding Document Management Services, IFCI Venture Capital Funds and MPCON, will remain direct subsidiaries. The board also recommended divestment of IFCI’s stake in MPCON, subject to an approval from the government.
All proposed changes are subject to statutory and regulatory approvals, the filing said.