IFCI Limited, a non-banking financial company that provides its services in India. It was incorporated in the year 1948 and it is based in New Delhi, India. Its name was changed from Industrial Finance Corporation of India to IFCI Limited in October of 1999. The company does provide financing services in the projects for power, telecommunications, ports, oil and gas, renewable energy, roads, chemicals, textiles, electronics, pharmaceuticals, basic metals, airports, smart cities, urban infrastructure, real estate, etc.
It offers services regarding corporate finance, like loan against shares, balance sheet funding, promoter funding, discounting the lease rental, working capital for long term requirement and capital expenditure. Besides, it provides short term loans for businesses like bridge financing and working capital to all kinds of corporate as well. Besides, it also offers modified schemes in case of incentive package; factoring, infrastructure and real estate, investment, depository participation, and technical consultancy services as well.
About Company Information:
IFCI was consequently corporatized after the Industrial Finance Corporation Act, 1993 being passed by the Parliament on July 1993. It was registered with RBI as a non-banking company in the year 1998. But, for regulating as a financial institution, it was excluded from the regulatory guidelines of a non-banking financial company.
During 1999-2000, two fully owned subordinates of the company, IFCI Investors Services Limited, and IFCI Custodial Services Limited were merged with another subordinate of the company, IFCI Financial Services Limited. The company, under Securitization Act 2003, occupied Arihant Industries Export Oriented Unit (EOU) in 2003. In 2004, the company amalgamated with Punjab National Bank (PNB) for helping each other.
IFCI was awarded for Corporate Excellence by Amity Business School during 2005-2006 and presented it every year in different areas to choose corporate for an excellent performance. The company endorsed IFCI Infrastructure Development Limited as a fully owned subordinate company during the year 2007-2008. It renamed Foremost Factors Ltd as IFCI Factors Ltd in April 2008.
The company, by enhancing and holding the customer base of high value, stepped up its operations and re-establishment of its presence in the financial market during the year 2010-2011. It took initiatives to extend the operation of its assets and entered into some new segments such as currency features, transactions of and repo and reverse repo in corporate bonds to hedge and enlarge the possibility of profit with nominal risk during the financial year 2011-2012.
During 2012-2013, the share of Government of India in the company was increased as the Government converted the optionally convertible debentures into equity shares, and hence made it the majority shareholder with an equity stake of 55.53% in IFCI Limited. The company undertook 6 branches of BMB (Bharatiya Mahila Bank) which were located at Ahmedabad, Kolkata, New Delhi, Guwahati, Chennai and Bangalore and also completed all the rest interior works during the financial year 2013-2014.
During the financial year 2014-2015, it has reopened and renovated its Regional Offices at Bhubaneswar, Bhopal, Lucknow, Kochi, Pune, and Patna. The company will enhance its presence through Pan-India and the company will also provide essential impulse to pick up new businesses from various areas.
During the fiscal year 2014-2015, the company has obtained 980 equity shares of the company RAJCON (Rajasthan Consultancy Organization Ltd) from HARDICoN which is equivalent to 49% of the equity shareholding, due to which RAJCON became an Associate of IFCI Limited. Its shareholding has decreased from 37.91% to 19.55% in Asset Care and Reconstruction Enterprise Limited (ACRE) because of the purchase of 800 equity shares of ACRE by the company and privileged allocation of the company by ACRE.
Subsequently, it converted into a Government Company on 7th April 2015, according to Section 2(45) of the Companies Act, 2013. IFCI held a 49% share in HIMCoN and made HIMCoN an Associate of the company, due to the fact that all the investment upon HIMCoN was stripped and HIMCoN, along with HARDICoN Ltd and NITCoN ceased during 2017 for being associates of IFCI Limited.
How IFCI Ltd, is categorised as a Finance Sector, and Finance - Term Lending Institution Industry :
The Finance sector is a section that leads the world in terms of equity market capitalization and earnings. The companies that are in the economic enterprise focus mainly on managing money, as their revenue is generated mostly by the sectors from mortgage and loans that gain value as interest rates rise. Also, this industry's economy is made up of institutions and firms that provide financial services to wholesale and retail customers.
IFCI Ltd is categorised as a Finance Sector, and Finance and Term Lending Institution Industry. Term lending institutions have been formed to loan money in order to meet the financial requirement of industries when there is an inadequacy of finance from the Financial sources such as Indigenous banker, commercial banks, share and debentures and public deposits. These institutions are providing a good amount of loan to Indian industries, and they have emerged as the most valuable source of industrial finance in recent years. The primary goal of IFCI is to offer medium-term and long-term financial service to public limited companies and cooperative organisations.
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