New Delhi, 2/11: India is considering pumping about Rs 2,000 crore ($242 million) into state-run IFCI Ltd. and merge it after with its unit, Stock Holding Corp. of India in an attempt to rescue the beleaguered lender, according to people familiar with the matter.
Prime Minister Narendra Modi’s administration is seeking to make the capital infusion into loss-making IFCI to bolster its balance sheet and reduce its debt burden before considering a merger, the people said, asking not to be named as the information is not public.
IFCI has reported annual losses for at least four straight years to March 31, 2022 and has lost more than 17% of market capitalisation in the past year.