IFCI is a term lender in India promoted by financial institutions and banks including LIC, and had no single promoter or majority shareholder till now, with 100% of its shareholding with a diverse body of domestic and foreign shareholders.
Business Standard has reported that IFCI Ltd has decided to proceed with the conversion of Government of India bonds worth INR 923 crore (INR 9.23 billion) into equity. The board of directors of the Company has decided to proceed with the conversion of optionally convertible debentures/bonds(OCBs) held by the Government of India for INR 400 crore (INR 4 billion) and financial assistance of INR 523 crore (INR 5.23 billion), IFCI said in a filing on the BSE.
IFCI will now become a Government of India company, which has its pros and cons. Pros include safety net of a govt. company against fraud and access to capital at all times, and cons include reduced aggression and speed in the capital markets, which IFCI was able to execute as an independent company till now.