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Tania Kishore Jaleel

Mumbai, Dec. 20 IFCI Ltd share prices took a beating on Thursday, as the company decided to scrap its plans to sell stake in the company. The company was planning to raise money to manage its growing non-performing assets.

Its share price fell 23.29 per cent to Rs 76.80 today, which is its steepest fall in more than a decade.

Analysts feel that the stock mainly plummeted as the investors wanted to book profits and get out of the stock.

Until there is proper clarification from the management, there is no scope for upside as of now, says Mr Prashant Bhansali, Director, Mehta Equities. While IFCI may now look at selling its assets, the Government is expected to help IFCI find its feet, say market men.

The IFCI stock movement depends on the kind of strategy the company would adopt in the future.

Given the situation, no Indian company would want to come to IFCI’s rescue except foreign companies, said a merchant banker.

Others are of the view that those holding IFCI shares would be better of if they switched to a more stable company.

“It would be better if they switch to some stocks in the banking sector with a long-term perspective in mind. IFCI would start stabilising at current levels until further clarification is made,” said a Director Research of a brokerage.

Mr R. Balagopal, Senior Vice-President, Fedex Securities Ltd, believes that only some good news can prevent the share prices from falling further.

“IFCI’s Plan A has fallen through, we have to wait and see how fast and how good the company’s Plan B will be. Those who have the capacity to hold on to the shares can hold for some more time. It will definitely take some time to get some clarity on the whole matter,” he added.

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