IFCI - Industrial Finance Corporation of India, plunged by 23.29% on NSE, falling by Rs. 23.30, owing to the stake sale that was scrapped yesterday. The script ended the day trading at Rs. 76.75.
The build-up to the 26% stake sale that started 6 months back came to a sad end for the investors. The script had gone from Rs 12 in Jan this year to an all time high of Rs 110 in Nov. IFCI had planned for a 26% stake sale to Public Equity players and of all the bidders Stelite and Morgan Stanley consortium emerged as the front runner after others such as Blackstone Group LP and Goldman Sachs Group Inc. dropped out.
IFCI quoted Sterlite and Morgan Stanley's terms as unacceptable which caused annulment of the deal. Sterlite and Morgan Stanley, were looking for 3 members to be a part of IFCI Board after the stake sale whereas IFCI was permitting only 2 members from the consortium to join the Board. Apart for this Sterlite also asked for appointment of a new CEO to which IFCI did not agree.
Investors expressed their disappointment today at the bourses and the script is expected to loose further when the market opens on Friday. Investors are suggested to book profits and go for short selling the stock.
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