IFCI shares rally 9% on approval of detailed corporate business plan

IFCI shares rallied nearly 9 percent intraday on June 26 after it said it has prepared a detailed corporate business plan with respect to the sale of non-core assets and recovery of NPAs.

The development finance institution, on June 25, said after making a substantial non-performing assets’ (NPAs) clean up and significant recoveries exercise in the year 2018-19, specifically in the ailing power sector, it has prepared a detailed corporate business plan based on the prevailing economic, banking and finance conditions and status.

The plan was approved by its board of directors on June 24.

IFCI said apart from covering the areas of sanctions, disbursements, advisory and aggressive recoveries from NPAs, the plan also envisages sale of non-core assets and investments, including the proposed sale of shareholding in National Stock Exchange of India and other divestments.

As a part of sale of non-core assets, on June 24, IFCI had approved the sale of its remaining stake of 1,20,66,871 equity shares (representing 2.44 percent of total paid-up equity) of NSE. It had been selling stake in NSE since May 2016.

The stock has surged 31 percent in the last five sessions. It was quoting at Rs 10.07, up Rs 0.68, or 7.24 percent on the BSE at 0943 hours IST.