IFCI gets Rs 500 crore capital infusion from govt

State-owned IFCI on Monday said it has received a capital infusion of Rs 500 crore through the issuance of equity shares to the government on a preferential basis.

Allotment of 12,39,77,188 shares to the Government of India was done on April 18, 2024, on a preferential basis, IFCI said in a regulatory filing.

Following the capital infusion, the government holding in the oldest financial institution IFCI has increased from 70.32 per cent to 71.72 per cent.

The government had infused Rs 100 crore in 2022 in long-term infrastructure financier IFCI Ltd.

The Industrial Finance Corporation of India was set up by the government on July 1, 1948, as the first Development Financial Institution in the country.

IFCI was provided access to low-cost funds through the central bank's Statutory Liquidity Ratio or SLR which in turn enabled it to provide loans and advances to corporate borrowers at concessional rates.