The Board of IFCI Limited, at its meeting held on July 14, 2025, has recommended to the Government of India the consolidation of the IFCI Group, which includes the merger/amalgamation of StockHolding Corporation of India Limited and other group companies with IFCI Limited. The board also recommended the divestment of IFCI's shareholding in MPCON Limited to the Government of India for approval.
| Particulars | Details |
|---|---|
| Merger 1 | Consolidation of StockHolding Corporation of India Limited, IFCI Factors Limited, IFCI Infrastructure Development Limited and IIDL Realtors Private Limited with IFCI Limited |
| NBFC Status | IFCI Limited (the consolidated entity) is proposed to remain as an NBFC |
| Merger 2 | Consolidation of StockHolding Services Limited, IFCI Financial Services Limited, IFIN Commodities Limited, IFIN Credit Limited and IFIN Securities Finance Limited into a single entity, which will be a direct subsidiary of IFCI Limited |
| Direct Subsidiaries | StockHolding Document Management Services Limited, StockHolding Securities IFSC Limited, IFCI Venture Capital Funds Limited and MPCON Limited shall be direct subsidiaries of IFCI Limited |
| Divestment | Divestment of IFCI's shareholding in MPCON Limited to the Government of India for approval |
Key Decisions
The IFCI Board has recommended a two-pronged approach to consolidate its group companies. The first part involves merging StockHolding Corporation of India Limited, IFCI Factors Limited, IFCI Infrastructure Development Limited, and IIDL Realtors Private Limited directly into IFCI Limited. The second part focuses on consolidating various broking and financial service entities, including StockHolding Services Limited, IFCI Financial Services Limited, IFIN Commodities Limited, IFIN Credit Limited, and IFIN Securities Finance Limited, into a single subsidiary of IFCI Limited.
Strategic Implications
By consolidating its group companies, IFCI aims to streamline its operations and enhance its strategic focus. The consolidated entity, IFCI Limited, is proposed to continue operating as a Non-Banking Financial Company (NBFC), while also exploring opportunities in custodial services, e-stamping, and advisory services, alongside its lending activities. This move is expected to create synergies and improve efficiency across the group.
Implementation Plan
The consolidation and divestment plans are subject to the approval of the Government of India, as well as other applicable regulatory and statutory approvals. The company will also need to comply with all relevant laws, rules, regulations, guidelines, frameworks, and standards. The board has recommended these proposals to the Government of India for their consideration and approval.
Additional Context
Other group entities including StockHolding Document Management Services Limited, StockHolding Securities IFSC Limited, IFCI Venture Capital Funds Limited and MPCON Limited will continue to operate as direct subsidiaries of IFCI Limited. The board has also proposed the divestment of IFCI’s shareholding in MPCON Limited to the Government of India.
