Shares of IFCI in Wednesday’s trade hit the 20% upper circuit of Rs 12 amid reports of a fund infusion plan by the government to the tune of Rs 2,000 crore.
The media reports suggest there is a plan to merge the company with its unit, Stock Holding Corporation of India, in order to rescue the state-run lender. The fund infusion in IFCI is aimed at reducing the debt burden of the company ahead of its merger with the unit.
The shares of loss-making IFCI on a year-to-date basis have corrected by over 28% and last at around 1:40 pm traded at Rs 11.45, up over 14%.
The company’s market capitalization has also taken a drastic hit in the last one-year and is at around Rs 2400 crore.
