IFCI to sell part of its stake in IFCI Factors

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.