The IFCI full form is Industrial Finance Corporation of India.
I = Industrial
F = Finance
C = Corporation of
I = India
- In 1948, IFCI Ltd. was established as India’s Industrial Finance Corporation, a Statutory Corporation, through Parliament’s ‘Industrial Finance Corporation of India Act, 1948’ to provide industry with medium and long term finance.
- In 1993, IFCI became a Public Limited Company incorporated under the Companies Act, 1956, after the repeal of this Act.
- Following an increase in equity participation to 55.53 percent by the Government of India on December 21, 2012, IFCI became a government-controlled company.
- The Government of India purchased six Crore Preference Shares of Rs.10/- each from six public sector banks in April 2015 from IFCI Ltd.
- With this, the Government of India’s shareholding in IFCI’s paid-up share capital has been raised to 51.04% and IFCI has become a government company under Section 2(45) of the Companies Act, 2013.
- IFCI is also registered with the Reserve Bank of India as a Systemically Relevant Non-Deposit-Taking Non-Banking Finance Company (NBFC-ND-SI).
- IFCI’s primary business is to provide the manufacturing, services, and infrastructure industries with medium to long term financial assistance.
- IFCI has diversified into a number of other industries through its subsidiaries and related organisations, including broking, venture capital, financial advice, depository services, factoring, etc.
- IFCI was one of the promoters of the National Stock Exchange ( NSE), Stock Holding Company of India Ltd (SHCIL), Technical Consulting Organizations (TCOs), and social sector institutions such as Rashtriya Gramin Vikas Nidhi (RGVN), the Institute for Management Development (MDI) and the Institute for Leadership Development (ILD) as part of its development mandate.
- According to the Budget for FY 2014-15, the Government of India has mandated IFCI to set up a Social Sector Initiatives Venture Capital Fund to encourage entrepreneurship among scheduled castes (SC) and provide them with concessional finance. The Fund was founded with a contribution of Rs.200 crore from the Government of India following the approval of SEBI under the AIF Regulation in 2012.
- As the Fund ‘s lead investor and sponsor, IFCI has dedicated Rs.50 crore. The Investment Manager of the Fund is IFCI’s subsidiary, IFCI Venture Capital Funds Ltd. In March 2015, under the Scheme of Credit Enhancement Guarantee for Scheduled Caste (SC) Entrepreneurs, the Government of India also granted Rs.200 Crore to IFCI Ltd. to guarantee banks against loans to young and start-up entrepreneurs belonging to Scheduled Castes with the purpose of promoting entrepreneurship in the lower strata of society.
IFCI Ltd.’s Board of Directors as on June 19, 2015
- Shri Malay Mukherjee – Chief Executive Officer & Managing Director
- Shri S.V. Ranganath – Independent Director and Non-Executive
Chairman of the Board
- Shri Achal Kumar Gupta – Deputy Managing Director
- Shri Alok Tandon – Government Nominee Director
- Shri Rajesh Aggarwal – Government Nominee Director
- Ms. Kiran Sahdev – Director
- Smt. Savita Mahajan – Independent Director
- Shri K.S. Sreenivasan- Independent Director
- Prof. N. Balakrishnan – Director
- Prof. Arvind Sahay – Independent Director