This PSU NBFC stock, which deals in the non-banking finance company, which is established to cater to the long-term finance needs of the industrial sector, is in focus after the President of India increased stake in the company followed by allotment of shares.
Share Price Movement
In Monday’s trading session, IFCI‘s share price was up by 3.42 percent in the early trade to the day’s high of Rs. 42.52. The stock reiterated from the day’s high and was trading at Rs. 40.77, which is 0.83 percent lower than the previous close of Rs. 41.11 per share.
In the past year, the stock has had a negative return of around 7 percent and has underperformed the Nifty Index.
What Happened
The company’s stock is in focus after IFCI allotted 8,07,23,280 equity shares at a share price of Rs. 61.94 to the Government of India (President of India) based on the meeting held on 28th February 2025. The issue of shares is through preferential allotment with shares aggregating upto Rs. 500 crore.
After the allotment of the equity shares to the Government of India, the shareholding increased from 71.72 to 72.57 percent of the total paid up share capital of the company.
Financials
In its latest filing for the quarter ending December 2024, the company reported a negative net interest income of Rs. 20.7 crore in Q3FY25 compared to Rs. 29.57 Crore in Q3FY24.
During the same period, the company turned from a net profit of Rs. 39.32 crores to a net loss of Rs. 8.74 crore in Q3FY25.
For the period ending 31st December 2024, the operating margin was at 22.49 percent and the net profit margin was -36.95 percent.
Company Profile
IFCI was established in 1948, and is a systemically important non-banking finance company providing medium and long-term finance. It was reconstituted as a company in 1993 and is now transitioning into an advisory firm.
Written by Santhosh S
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