IFCI stake sale cancelled

Dec 19, 2007

IFCI stake sale cancelled

[India]

The 26% stake sale in Industrial Finance Corporation of India (IFCI) has been cancelled. The leading bidders for the sale was Sterlite Industries & Morgan Stanley consortium. The price offered by the consortium was Rs. 110 while IFCI had put a lower limit of Rs. 107 per share. The conditions put by Sterlite - Morgan Stanley is believed to be the cause of IFCI calling off the sale. Management control might have been one of the major issues behind this. IFCI wanted them to be strategic investor without any management control.

Earlier IFCI was planning to convert some of its debt into equity and came up with the 26% stake sale offer. After the announcement of the stake sale IFCI's market price has risen several times in speculation of high offer price. IFCI used to trade at Rs. 10 per share level a year back. There have been other factors behind such a steep rise in its share price this year.

Source of data for chart: National Stock Exchange (NSE) of India

No comments:

Post a Comment

The contents of this blog are personal opinion/ views of the author and carry no relation to any firm/organization to which the authors are related. The articles are for information/educational/learning purpose only and should not be treated as recommendation for engaging in any market related activities like buy/sell/short-sell/lease etc.

Though the authors have done their best to make sure that the content in this blog is legitimate and authentic, however errors can't be ruled out. The authors are not responsible for any possible loss arising due to use of any information provided in this blog or in any other relation to this blog.

Any article/post in this blog can be used freely by giving link to that post. For further details, please visit Copyright and Disclaimer.

We may use third-party advertising companies to serve ads. These companies may use information (not including your name, address, email address, or telephone number) about your visits to this and other websites in order to provide advertisements about goods and services of interest to you (e.g. DART cookie). If you would like more information about this practice and to know your choices about not having this information used by these companies, please click here.

Dec 19, 2007