Shares of IFCI dropped sharply by more than 4%, after reports that The Securities and Exchange Board Of India (Sebi) on Tuesday cleared the government proposal to buy a majority stake in IFCI Ltd through conversion of debentures.
Shares of IFCI were down more than 5% at Rs 30.30 on the Bombay Stock Exchange at 10.20 am IST.
According to a report in the Business Standard, SEBI granted the government's request to exempt it from making an open offer to minority investors, which is otherwise mandatory for any acquirer going over 25 per cent. After the conversion, the government stake will rise to 55.57 per cent.
IFCI is a leading government owned financial institution in India.