IFCI Proposes Major Consolidation With Government Approval

State-owned IFCI has taken decisive steps toward restructuring, seeking approval from the government for a significant consolidation of its group entities, including the broking business. This strategic move aims to streamline operations by merging several subsidiaries into a single Non-Banking Financial Company (NBFC).

In a recent regulatory filing, IFCI informed its board's recommendation for the group's consolidation in phases. This consolidation, approved in principle by the Government of India, will encompass the merger of IFCI, StockHolding Corporation of India, and other subsidiaries. A Transaction Advisor has been appointed to oversee this process.

Part of the consolidation includes merging StockHolding Corporation, IFCI Factors, and others with IFCI Limited, retaining its NBFC status. Additionally, IFCI seeks to consolidate other subsidiaries into a single direct subsidiary and divest its stake in MPCON Limited. All decisions await necessary regulatory approvals.

(With inputs from agencies.)