Govt may go for strategic sale in IFCI
NEW DELHI:
After acquiring a majority control in IFCI, the government
may opt for a strategic sale as part of its plan to dilute its
stakeholding in what was the country's oldest financial institution.
Sources said the view in government is that the Centre has managed to
realize a good value on its investment of Rs 900 crore, which was given
to IFCI by way of convertible shares at the start of the millennium.
But given that it does not have a business plan for it, the best route would be to sell it to another player, especially when development financial institutions that specialized in offering term loans are no longer seen to be relevant.
In fact, when IFCI shareholders tried to rope in a strategic investor five years ago, the uncertainty over how the government would deal with the convertible shares had resulted in muted response. In fact, with Sterlite being the only remaining player in the fray, the sale process was abandoned.
But given that it does not have a business plan for it, the best route would be to sell it to another player, especially when development financial institutions that specialized in offering term loans are no longer seen to be relevant.
In fact, when IFCI shareholders tried to rope in a strategic investor five years ago, the uncertainty over how the government would deal with the convertible shares had resulted in muted response. In fact, with Sterlite being the only remaining player in the fray, the sale process was abandoned.
AVINASH KUMAR
PGDM 1 st year
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