IFCI, the financial institution providing term loans to individuals, has announced the sale of 24% stake in TFCI (Tourism Finance Corporation of India) for ₹290 crores. Prior to this deal, IFCI owned 26% stake in TFCI and it was blocked since May this year. The sale might have come as a relief to IFCI, as the infused funds will help the company post better revenue figures for the ongoing quarter. In the quarter ended June, it had reported a loss of ₹276 crores.
With the announcement, IFCI has not yet disclosed the name of the buyer. However, as on today, the total holding of financial institutions in TFCI was 39%, which included IFCI holding 26%, LIC (Life Insurance Corporation) holding 6.7% and Bank of India holding 4%.
The news did have a bit of impact on the share trade of IFCI and it rose around 1.5% to trade at ₹23 at the time of this report being published.