This PSU stock under ₹100 soars 15% today after its board approves the merger of group companies; check details

The merger talks were initiated after IFCI had received a communication from the Department of Financial Services (DFS), which comes under the ambit of the Union Ministry of Finance, to consider ‘consolidation of IFCI Group’.

Subsequently, at its meeting held on November 22, the IFCI Board considered and accorded in-principle approval to consider consolidating the group.

IFCI disclosed the tentative merger plans in a stock exchange filing on Friday. The notification said that, at the company level, StockHolding Corporation of India Ltd, IFCI Factors Ltd, VFCI Infrastructure Development Ltd and IIDL Realtors Ltd will merge with the listed entity IFCI Ltd.

As part of the consolidation of broking business entities, StockHolding Services Ltd, IFCI Financial Services Ltd, IFIN Commodities Ltd and IFIN Credit Ltd would be merged into a single entity, which will be a direct subsidiary of the consolidated listed entity IFCI.

Other group entities may continue as direct subsidiaries of IFCI. These include StockHolding Document Management Services Ltd, StockHolding Securities IFSC Ltd, IFIN Securities Finance Ltd, IFCI Venture Capital Funds Ltd and MPCON Ltd.

After the merger news, IFCI Ltd shares jumped as much as 15.15% to hit an intra-day high of ₹66.79 on Monday on the National Stock Exchange of India (NSE). On BSE, IFCI stock price soared 14.8% to hit the day’s high of ₹66.59.

However, the stock pared some of its early gains to trade 10.71% higher at ₹64.21 apiece on the NSE at 1:35 pm. Meanwhile, the benchmark indices, NIFTY and SENSEX, traded around 1% higher each.