IFCI plunges

Shares of IFCI plunged over 10 per cent in morning trade, as the board could not reach a final decision on the induction of a strategic partner for which discussions continued for the second day on Tuesday.

The IFCI scrip fell to an intra-day low of Rs 97.40 down 10.14 per cent in the morning trade, as against yesterday's close of Rs 108.40 on the Bombay Stock Exchange.

Vedanta Group company Sterlite Industries, in association with Morgan Stanley, is the front-runner for picking up a 26 per cent stake in the financial institution.

A final decision on the bidder for the 26 per cent stake sale and the price of sale is expected to be finalised today at the board meeting which is continuing from yesterday.

The scrip was trading at Rs 104.40, down 3.69 per cent at the BSE, while a total of 2.26 crore shares had changed hands at the bourse in the afternoon trade.

The other bidders included consortia of Shinsei Bank Ltd of Japan, Punjab National Bank and JC Flowers and US-based Cargill Financial with Texas Pacific Group.

However, the consortium of W L Ross, GS Capital Partners VI Fund and Standard Chartered Bank opted out of the race to acquire a strategic stake in the country's oldest financial institution.