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The Industrial Finance Corporation of India (IFCI) is a public sector company. It was basically established as a statutory corporation. The IFCI is listed on the National Stock Exchange Limited (NSE) and Bombay Stock Exchange Limited (BSE).
After the journey from its establishment to its development and achievements, it now manages six subsidiaries and three institutions. The IFCI grants financial support and assistance in developing the industries by new entrepreneurs and follows every step of their career by guiding and consulting them about better ideas to achieve their projects and plans.
After its establishment, the IFCI has been financing various fields, like building roads and airports, allied agricultural sectors, power supply, manufacturing of goods, and concerns related to the industries. IFCI share price is the one that shows the company’s current value or market value.
How was IFCI Established?
In 1947, after India attained independence, the Capital Markets of India were not sufficiently developed. Thus, there was an immediate need for capital, but there was a scarcity of capital contributors. The banks present at that time were not sufficient enough to provide long-term financial needs. As a result, the Government of India established IFCI in 1948 on the 1st of July by enacting the IFC Act 1948.
The Journey of IFCI from the Statutory Corporation to a Company
At first, the IFCI was the Development Financial Institution of India to develop infrastructure and industry, thereby contributing to the growth of the Indian economy.
Since IFCI was established, it has contributed to the economy’s growth by endlessly supporting the projects such as infrastructure, services, manufacturing and agriculture associated sectors. In 1991, the Liberalization of the Indian Economy made crucial changes in the Indian Capital Markets & Financial System. To support raising funds through the capital market, the regulations of IFCI were changed from statutory corporation to a company.
What is a Credit Enhancement Guarantee Scheme for Scheduled Caste?
In 2015, the IFCI was designated a nodal agency by the Ministry of Social Justice and Empowerment, Government of India, to execute the ‘Credit Enhancement Guarantee Scheme for Scheduled Caste (SC)’. The IFCI implemented this scheme to encourage the individuals belonging to the Scheduled Caste (SC) to start their businesses by providing the financial support and assistance needed for the project.
A Venture Capital Fund of 200 crore rupees for Scheduled Caste (SC) with IFCI has been placed by the Govt. of India to promote new business officials from the scheduled Caste to come forward and start their careers as business individuals and to issue finance.
Achievements of IFCI
The IFCI bank provides support financially for various industries along with individuals as well. The IFCI finances developmental activities as well which include telecom, real estate, airports, roads and services sectors. The IFCI bank, since its inception 70 years ago, has financed large projects like Salasar Highway, Raichur Power Corporation and so on.
The IFCI also contributes in areas like consultancy organizations, stock exchanges, educational and skill development institutes, GMR Goa International Airport and Adani Mundra ports amongst others. Some of these financing projects are mentioned below:
- In time, the IFCI became the nodal agency by providing advising services to several Govt. of India schemes like
- Production Linked Incentive (PLI) Scheme
- Sugar Development Fund
- Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS)
- MSPS
- Establishment of the following institutions
- Stock Holding Corporation of India Ltd (SCHIL)
- National Stock Exchange Ltd (NSE)
- LIC Housing Finance Ltd
- ICRA Ltd
- Tourism Finance Corporation of India Ltd (TFCI)
3.IFCI also has the following subsidiaries
- MPCON
- IFCI factors Ltd
- IFCI Venture Capital Fund Ltd
- IFCI Infrastructure Development Ltd
- Stock Holding Corporation of India Ltd
- Establishment of the following institutions
- Rashtriya Gramin Vikas Nidhi
- Management Development Institute
- Institute of Leadership Development
Description of the IFCI Ltd Company
- The IFCI Ltd company’s headquarter is in New Delhi.
- This company consists of 195 employees in all of its locations.
- 357 companies come under the corporate family of IFCI Ltd
IFCI Share Price
- The current IFCI share price is 11.15 Indian rupees.
- The previous close of IFCI’s share price was 11.35 Indian rupees.
- The market capitalisation of IFCI is 23.32 Indian rupees.
Conclusion
The IFCI is a company that grants financial support and assistance to the industries, as the name itself says. The establishment of IFCI in 1948 was the turning point in developing and growing the Indian economy. The growth of IFCI itself as a company has made beneficial changes in the policies or regulations of IFCI.
