Government Injects Rs 500 Crore for IFCI's Financial Revamp

The Indian government is injecting Rs 500 crore into IFCI to strengthen its financial position before restructuring. This move will boost the government's holding above 71.72%. Approved under the Supplementary Demand for Grants for 2024-25, this is part of a broader plan to consolidate IFCI with related entities.

The Indian government has announced a significant capital infusion of Rs 500 crore into the state-owned Industrial Finance Corporation of India (IFCI). This strategic move aims to enhance IFCI's financial stability amid plans for restructuring and merging it with other group companies.

The capital injection is expected to increase the government's stake in IFCI from its current 71.72%, as registered in September 2024. This decision follows the recent approval of the capital infusion under the first Supplementary Demand for Grants for the fiscal year 2024-25 in Lok Sabha.

In addition to this financial move, the Department of Financial Services has also given the green light for a consolidation plan, which includes the merger of IFCI with several of its subsidiaries, as the government navigates IFCI through its financial and operational challenges.

(With inputs from agencies.)