According to a recent press report, ICICI Bank has sold its entire 16.9 per cent stake in Stock Holding Corporation of India (SHCIL) to Industrial Finance Corporation of India Ltd (IFCI) at Rs. 818 a share. This makes IFCI the biggest shareholder in SHCIL.
Reports said that the IFCI’s stake in SHCIL has increased to 33.8 per cent including this stake sale. This share sale has to be approved by the board of SHCIL as there is a stipulation that no single shareholder can hold more than 24 per cent stake in the company.
The other major shareholders in SHCIL are IDBI Bank, which has about 18 per cent stake, SU-UTI 16.9 per cent stake and LIC with 16.9 per cent stake. The rest is held by other non-life insurance companies.
Reports said that a spokesperson from ICICI Bank said that the bank has sold the stake, and refused to share further details. The industry sources said that IDBI Bank was the one which was the driving force behind SHCIL, which offers custodial and depository services but as IFCI has become the majority shareholder, it is unknown if the control would shift from IDBI Bank to IFCI.
IFCI is a wholly government-owned development financial institution and provides short term loans, midterm loan and long-term loans to the infrastructure and industrial sectors.