IFCI Ltd. : Information
| Full Name | Industrial Finance Corporation of India Ltd. (IFCI) |
| Founded | 1948 |
| Headquarters | New Delhi, India |
| ISIN | INE039A01010 |
| Stock Listing: | Listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) |
Overview
IFCI Ltd. is a government-owned development bank in India. Established in 1948, it was the first development financial institution in the country. IFCI’s primary objective is to provide long-term financial assistance to the industrial sector, thereby contributing to the industrial development of the nation. IFCI was established as a statutory corporation under the Industrial Finance Corporation Act, 1948. Converted into a public limited company and renamed IFCI Ltd. The Government of India reduced its shareholding, making IFCI an autonomous body.
Business Activities and Services
Long-term loans to new industrial projects. Expansion, diversification, and modernization of existing units. Assistance in working capital requirements. Bridge loans and short-term loans. Securitization, asset-backed financing, and other structured financial solutions. Investment in equity and equity-related instruments of companies. Financial advisory and consultancy services. Project appraisal and monitoring.
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Key Financial Highlights (as of the latest fiscal year)
- Revenue: Approximately INR 1,500 crore.
- Net Profit: Approximately INR 100 crore.
- Total Assets: Approximately INR 30,000 crore.
Governance and Management
The board consists of experienced professionals from various fields, including finance, industry, and public administration. Chairman and Managing Director (CMD): Mr. Rakesh Kumar Executive Directors: Various directors handling specific functions such as finance, operations, and business development.
Subsidiaries and Associates
IFCI has several subsidiaries and associate companies that cater to different segments of the financial services industry. IFCI Factors Ltd.: Focuses on factoring and receivables management. IFCI Infrastructure Development Ltd.: Engaged in infrastructure development and advisoryservices. IFCI Venture Capital Funds Ltd.: Manages venture capital funds and provides equity support to companies.
Achievements and Contributions
IFCI has played a crucial role in financing key industrial projects across various sectors such as steel, textiles, and infrastructure. Contributed to the formulation of policies that promote industrial development in India. Engaged in various corporate social responsibility (CSR) initiatives focusing on education, healthcare, and environmental sustainability. Like other financial institutions, IFCI faces challenges related to NPAs, impacting its profitability.
Increasing competition from private sector banks and non-banking financial companies (NBFCs). Plans to diversify its portfolio by venturing into new financial products and services. Emphasizing digital solutions to enhance operational efficiency and customer service. Expecting continued support from the government for infrastructure and industrial development projects.
Contact Information:
| Address: | IFCI Tower, 61 Nehru Place, New Delhi – 110019, India |
| Phone: | +91-11-41732000 |
| Website: | www.ifciltd.com |
| Email: | info@ifciltd.com |
IFCI Ltd. has been a cornerstone of India’s industrial financing sector since its inception. Despite facing challenges, it continues to play a vital role in supporting the nation’s economic development through its financial services and initiatives.
IFCI Ltd: Current Share Price
IFCI Limited is a public sector financial company headquartered in New Delhi, India. Established in 1948, it was initially known as the Industrial Finance Corporation of India. The company was renamed IFCI Limited in 1993.
Key Information:
- Chairman: Position currently not specified
- Managing Director: Manoj Mittal
- Market Capitalization: ₹15,917 crore
- Total Assets: ₹22,918 crore as of July 2024
- Return on Equity: 2.44%
- Operating Margin: 59.94%
- Net Margin: 12.45%
- Dividend Yield: 0%
IFCI provides various financial services, including project finance, corporate finance, advisory services, and syndication for sectors like power, telecommunications, roads, oil and gas, ports, airports, chemicals, pharmaceuticals, textiles, real estate, and urban infrastructure. It also offers corporate loans, real estate and infrastructure services, and credit enhancement schemes.
Current Share Price:
| Date | Exchange | Share Price (₹) |
|---|---|---|
| 12-Jul-2024 | NSE | 69.50 |
| 12-Jul-2024 | BSE | 68.40 |
IFCI is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The company’s share prices have shown significant returns, increasing by 70.31% over the last three years.
IFCI Ltd. Balance Sheet:
| Particulars | Amount (₹ in Crore) |
|---|---|
| ASSETS | |
| Non-Current Assets | |
| Property, Plant & Equipment | 200 |
| Investment Property | 50 |
| Goodwill | 30 |
| Other Intangible Assets | 20 |
| Financial Assets | |
| – Investments | 5,000 |
| – Loans | 12,000 |
| – Others | 2,000 |
| Deferred Tax Assets | 100 |
| Other Non-Current Assets | 50 |
| Current Assets | |
| Inventories | 10 |
| Financial Assets | |
| – Trade Receivables | 100 |
| – Cash & Cash Equivalents | 500 |
| – Bank Balances other than Cash | 200 |
| – Loans | 2,000 |
| – Others | 1,000 |
| Current Tax Assets | 50 |
| Other Current Assets | 30 |
| Total Assets | 23,340 |
| EQUITY & LIABILITIES | |
| Equity Share Capital | 1,500 |
| Other Equity | 3,000 |
| Liabilities | |
| Non-Current Liabilities | |
| Financial Liabilities | |
| – Borrowings | 12,000 |
| – Others | 2,000 |
| Provisions | 200 |
| Deferred Tax Liabilities | 100 |
| Other Non-Current Liabilities | 50 |
| Current Liabilities | |
| Financial Liabilities | |
| – Borrowings | 2,000 |
| – Trade Payables | 500 |
| – Others | 1,000 |
| Other Current Liabilities | 500 |
| Provisions | 50 |
| Current Tax Liabilities | 100 |
| Total Equity & Liabilities | 23,340 |
(Note: The above table is a fictional representation based on common financial statement structure and does not reflect the actual balance sheet of IFCI Ltd.)
FAQs About IFCI Ltd.
1. What is the primary function of IFCI Ltd.?
ANS: IFCI Ltd. is primarily a development financial institution that provides long-term financial assistance to the industrial sector. Its services include project finance, corporate finance, advisory services, and structured financial solutions to support industrial growth and development in India.
2. Who are the major stakeholders in IFCI Ltd.?
ANS: The major stakeholder in IFCI Ltd. is the President of India, who holds a majority share of 70.32% in the company. This makes IFCI a government-owned entity, though it operates with a degree of autonomy.
3. How can one purchase shares of IFCI Ltd.?
ANS: To purchase shares of IFCI Ltd., you need to follow these steps:-
- Open a demat account with a registered broker, providing necessary
- KYC documents like PAN, Aadhaar, and bank account details.
- Log in to the broker’s platform using the credentials provided.
- Transfer funds from your bank account to the broker’s trading account.
- Search for IFCI Ltd. shares on the broker’s trading platform, specify the quantity, and execute the buy order.