While seeking a definite say in determining its future, IFCI has written to the

RELATED ARTICLES IFCI Q3 net down 2% at Rs 114 cr

ministry of finance suggesting that the government should not limit the options to the single-point agenda of inducting a strategic partner.

IFCI's missive comes at a time when the government has initiated the process of appointing consultants for induction of a strategic partner.

“Why should we consider induction of a strategic investor as the only option? Is it also not possible to look at what are the things in the company that are working well and whether we can look at advancing them or consolidating them?” Atul K Rai, chairman and managing director, IFCI, told Financial Chronicle.

Hinting that the company would like its future to be decided by its own board, Rai said: “I understand the government is in the pro-cess of appointing consultants (for induction of a strategic partner). We have also communicated what the corporate decision stru-cture for an issue like this should be, for a listed entity where government does not have a shareholding also needs to be taken into account,” Rai said.

Asked specifically whe-ther IFCI wants its board to take a call on induction of a strategic investor, Rai evaded a direct answer.

“Our responsibility is to bring to the notice of the government what the constitution of this company is and what is the accepted method of deliberating its own future within that form and structure of ownership. And lastly, what the financial performance of the company has been of late. That is to say that there is no visible signs of stress. I would perhaps like to say that contrary to stress, the company is doing very well,” he said.

Efforts to get the views of the banking division of the finance ministry on the issue did not yield results.

Rai felt that induction of a strategic partner might not be a wise move at a time when the present structure has been showing good results. “If a certain thing has been working which is known to have been working so far, obviously it needs to be looked at whether your need any substantial amount of change in that,” Rai said.

The company’s net worth now stands at Rs 3000 crore plus. It may go up to Rs 3,500 crore or even Rs 3,700 crore by the end of the year, Rai said.