22nd November 2011, 05:55 PM
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Regular Member
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Join Date: Dec 2007
Location: Kolkata
Posts: 840
Rep Power: 111
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Quote:
Originally Posted by man4urheart
Sold IFCI at 24- Booked loss, it is crap share, I took the bet on banking license expectations, it is a 0 fundamental debt ridden company!
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The overhang over the stock was regarding the conversion of zero-coupon optionally convertible debentures issued to Govt. during IFCI's bailout in 2002-03. Link here
Now that the Govt decided to convert this to a PSU and asked other PSUs to not sell stake, Govt will be the majority shareholder in IFCI with 52% holding.
Quote:
At current prices, the government will get over 23% equity stake in the company, in which state-owned insurers and banks hold a 29.3% stake. Foreign institutional investors owned 14.95% at the end of September, down from 19.45% in June.
The officials said Life Insurance Corporation of India, General Insurance Corporation, IDBI Bank and Punjab National Bank have been told not to sell their IFCI stake.
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Moreover this means an end to the banking license dream, as RBI hinted at granting license to only non PSU companies.
However this may get merged with some state owned entities.
Quote:
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"Once the approval comes through we will look at all options, including merging IFCI with a public sector entity or continuing it on a stand-alone basis," the ministry official said.
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