The Hindu : Business : IFCI in search of strategic partner once again

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Tuesday, Jul 15, 2008
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IFCI in search of strategic partner once again

Special Correspondent

Reports 39 % drop in Q1 net profit at Rs. 151 crore

— PHOTO: RAMESH SHARMA

FRESH PROCESS: Atul Kumar Rai, CEO and Managing Director, IFCI, addressing a press conference in New Delhi on Monday.

NEW DELHI: Non-banking finance company IFCI on Monday said it will scout for a strategic partner once the issues of capital structuring are settled.

“There are certain issues in terms of capital structure of the company which are not consistent in our bid to seek a strategic partner and this issue has to be resolved,” IFCI Chief Executive Officer Atul K. Rai said during an interaction with reporters after releasing the financial results for the first quarter here.

According to him, once the issues are resolved, the company could initiate the process of induction of a strategic partner “as quickly as necessary”. And one of the issues related to the capital structure is whether the government would convert its Rs. 923 crore bonds issued to IFCI into equity or not.

It may be recalled that the IFCI board last year had aborted the process for 26 per cent equity sale to a strategic partner, as it did not agree with the bidder’s demand for management control. Responding to a query, Mr. Rai said, “I do not think that is possible to revive the old bidding process as circumstances and scenario have changed. I think it would have to be fresh process.”

Meanwhile, IFCI had announced a net profit of Rs. 151.07 crore (Rs. 246.86 crore) for the first quarter ended June 30, 2008, a 39 per cent decline over the year-ago period.

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