IFCI hogs limelight on plans to induct strategic investor

IFCI jumped 6.67% to Rs 62.60 at 15:08 IST on BSE after the company scheduled a meeting of the board of directors later in the day to consider induction of strategic investor.

The stock hit a high of Rs 65 and a low of Rs 57.70 so far during the day. The stock had a 52-week high of Rs 121.20 on 17 December 2007 and a 52-week low of Rs 36.70 on 24 March 2008.

The mid-cap scrip had underperformed the market over the past one month till 27 May 2008, declining 6.92% compared to the Sensex's decline of 4.35%. It also underperformed the market in the past one quarter, sliding 6.55% compared to Sensex's decline of 8.70%.

The company's current equity is Rs 763.73 crore. Face value per share is Rs 10.

This is the second time IFCI is making an effort to induct an investor. It may be recalled that in December 2007, IFCI's board decided to call-off the planned sale of a 26% equity stake as the Sterlite-Morgan Stanley consortium sought management control of the state-run firm.

The government owns convertible debentures of Rs 923 crore in IFCI that can be converted into equity shares at later date.

IFCI had reported net loss of Rs 42.52 crore in Q4 March 2008 as compared to net profit of Rs 668.43 crore in Q4 March 2007. The company's operating income declined 32.8% to Rs 830.10 crore in Q4 March 2008 over Q4 March 2007.

IFCI's principal activities are project financing, providing financial services and comprehensive corporate advisory services. The company also provides equipment finance, equipment credit, equipment leasing, corporate loans, short-term loans and working capital loans to meet the specific needs of corporate.