IFCI jumps on stake sale

IFCI opened the day for trading on almost the same Rs.34 levels but soon rose to almost Rs.35.35 and currently trades around the same level, up over 2% and figures amongst the top five gainers in an otherwise lackluster market.

The news is that IFCI is finally partially, divesting its stake in Tourism Finance Corp of India (TFCI) in the ensuing 5 months. IFCI currently holds 42.5% stake in TFCI, which is a Delhi based PSU providing finance for tourism related services. Other stake holders in TFCI are SBI with 9.19% stake, LIC at 7.7% and BoI at 4.7%. Total promoter holding is 66.86%.

There is no way that IFCI will sell its entire stake as it will continue to remain the promoter of TFCI and this partial stake sale is more like earning money on its investment. TFCI had ended Q1FY15 with a net profit at Rs.19 crore, up from Rs.16 crore (YoY).