State-owned Life Insurance Corporation of India (LIC) wants to dilute its holding in IFCI even as the Delhi-headquartered non-banking finance company is awaiting cues from the government on its future strategy.
Sources said LIC has approached the IFCI management to lower its holding from 11.39 per cent to 8.39 per cent, the level it was at prior to conversion of debt into equity earlier this year.On its part, IFCI is seeking a legal opinion on how to go about the process.The sources also said the IFCI management is yet to hear from the government on the strategy it should adopt for restructuring the operations, which have been in a pause mode for almost a decade.
The NBFC has communicated the failure of the process to rope in a strategic investor to the government and also reported the apprehensions that some of the bidders had regarding the convertible bonds issued to the Centre, which helped it tide over the financial crisis. IFCI was saddled with high cost debt and was finding it tough to pay bondholders prompting the government to step in.
Read more in The Business Standartd article.
No comments:
Post a Comment