IFCI gains on plans to sell part of its stake in IFCI Factors

IFCI is currently trading at Rs. 26.85, up by 0.15 points or 0.56 % from its previous closing of Rs. 26.70 on the BSE. The scrip opened at Rs. 26.80 and has touched a high and low of Rs. 27.60 and Rs. 26.60 respectively. So far 233863 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 31.45 on 10-May-2013 and a 52 week low of Rs. 17.85 on 28-Aug-2013. Last one week high and low of the scrip stood at Rs. 26.85 and Rs. 25.05 respectively. The current market cap of the company is Rs. 4454.26 crore. The promoters holding in the company stood at 55.53% while Institutions and Non-Institutions held 18.13% and 26.33% respectively. IFCI is planning to sell part of its stake in factoring business subsidiary -- IFCI Factors -- by the end of this fiscal. In this regard, the company has started the process of due diligence. The strategic sale would help IFCI unlock its investment. The company plans to sell 25-26% stake so that the majority stake remains with IFCI. Currently, the company holds 100% stake in IFCI Factors. Factoring business is a type of financial service wherein a firm sells its accounts receivable to a factoring company, which then pay discounted value to seller against receivable receipts. IFCI was established with an intention to provide long-term finance needs of the industrial sector. It founded and developed various institutions namely ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for promotion of the hospitality industry, among others.