NEW DELHI: Industrial Finance Corporation of India (IFCI) will now be back in the government fold with the Union cabinet approvingRs 60-crore equity infusion in the entity to raise its shareholding to 51% from 47.93% at present. The cabinet, chaired by Prime Minister Narendra Modi, has approved a plan to increase shareholding in IFCI by way of acquisition of preference shares from existing shareholder, said an official statement on Monday.
IFCI was set up in 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948. The Act has since been repealed by the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993. IFCI was registered under the Companies Act, 1956, on March 31, 1993. IFCI reported a 24% rise in its net profit at Rs 173.79 crore for the second quarter ended September on account of significant reduction in provisions.