The Central Government, on Friday, restructured the board of IFCI by nominating two new directors in the wake of its raising stake in the domestic financial institution (DFI) to 55.57 per cent.
Four existing members have already stepped down from the board, while further changes are likely soon.
A decision to restructure the board was taken late last night, and comes on the back of government raising its stake IFCI to 55.57 per cent.
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The government has nominated two directors — Anurag Jain, Joint Secretary, Ministry of Finance, in the Department of Financial Services, and VK Chopra, Deputy Secretary — on the IFCI board, the company said in a filing to the BSE.
The DFI said four directors who have stepped down from the board were: Sanjeev Kumar Jindal, Shobhit Mahajan, Atul Ashok Galande and S. Shabbeer Pasha.
In August, the Cabinet had approved the conversion of debentures worth Rs.923 crore that it held in IFCI into equity, following which its stake in DFI rose to 55.57 per cent.
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Stocks surge
Shares of IFCI on Friday rose by over 12 per cent after the government restructured the company’s board.
Following the move, shares of the company shot up by 12.26 per cent to Rs.38.45 during the day on the BSE. It finally ended at Rs.38.15, up 11.39 per cent from its previous close. On the NSE, it ended 12.12 per cent higher at Rs.38.40.