Comments
The Centre has no immediate plans to convert its debenture holdings worth Rs 523 crore in IFCI Ltd into equity shares of the company. This, even as most public sector banks and institutions have converted into equity Rs 1,079 crore of the Rs 1,479.22 crore invested by them in zero coupon optionally convertible debentures (ZCOCD) issued by IFCI during 2002-03.
The Centre, on its part, is not looking to exercise the conversion option available for the Rs 523 crore worth of debentures, bearing 0.21 per cent coupon per annum for 20 years. It had subscribed to these debentures in 2002-03 as part of a financial package approved for then-troubled financial institution.
“No such proposal (for conversion into equity) is under consideration of the Government”, the Finance Minister, Mr Pranab Mukherjee, told the Lok Sabha.
As many as 30 public sector banks and institutions had, in 2007, converted a major part of their holdings in the ZCOCDs into equity shares at Rs 107 a share.
On Tuesday, IFCI's equity share closed on the National Stock Exchange (NSE) at Rs 39.65, reflecting a 3.29 per cent decline over the previous day's close of Rs 41.
krsrivats@thehindu.co.in
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.