IFCI board of directors has given its nod to sell the company’s entire 26.09 per cent stake in Tourism Finance Corporation of India Ltd (TFCI).
TFCI has been the only government-promoted financial institution for funding tourism projects.
The decision to exit TFCI is part of IFCI's plan to exit its non-core assets. “Only a decision to sell entire 26.09 stake in TFCI has been taken on Friday. The buyer has not been identified as yet. The mode of divestment is also not yet decided,” Sanjeev Kaushik, Chief Executive Officer, IFCI, said.
Over the past few years, IFCI, a government company, has been scaling down its shareholding in TFCI.
Meanwhile, IFCI has for the quarter ended March 31, 2017 reported a net loss of Rs 318 crore. This loss level is substantially higher than the net loss of Rs 101 crore in the same quarter last fiscal.
For the entire fiscal 2016-17, IFCI has reported a net loss of Rs 459 crore compared to a net profit of Rs 338 crore in the previous fiscal.
In the recent years, IFCI has been on a value unlocking spree, looking to divest stakes in several of its subsidiaries, associate and portfolio companies, such as the National Stock Exchange.
As of end March 2017, IFCI had 29.36 per cent stake in TFCI. The other main shareholders as of end March 2017 include Bank of India (4.70 per cent), Life Insurance Corporation (6.71 per cent), United India Insurance Co (1.48 per cent) and Oriental Insurance (1.07 per cent).