IFCI Ltd. has recently acquired 46.65% shareholding of Mohan Exports Group in Foremost Factors Ltd. (FFL), thereby increasing its stake to 96.49% in FFL. It also proposes to acquire the balance shareholding of 3.5% from other shareholders to make it 100% subsidiary of IFCI. FFL was originally promoted by Mr. Mohan Puri, Promoter of Mohan Exports and Nations Bank Overseas Corporation USA, the then fourth largest bank in USA and Nations Banc Commercial Corporation (NCC), the then third largest factoring company in USA along with the Institutional investors viz., the 20th Century Finance Corporation Ltd. and ICDs group. Subsequently IFCI acquired 49.84% stake in FFL.

When it was set up in 1996, FFL was the first private sector factoring company in India to offer both domestic and export factoring facilities. It holds an authorized dealer license to conduct international factoring business and is a pioneer in bringing export factoring into India. FFL was also the first in India to become a member of Factors Chain International (FCI), the prime international forum of Factors across the world.

With a turnaround in its operations, IFCI now satisfies the applicable regulatory norms and has recently restarted its lending operations. At present, IFCI does not have a banking license. By foraying into the factoring services through FFL, IFCI will be able to extend receivable financing in a big way to its clients by utilizing its national presence through its various Regional & Branch offices.

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IFCI Ltd., formerly known as the Industrial Finance Corporation of India Ltd., the first Development Finance Institution of the country, was set up in 1948 to provide impetus to industrial development through medium and long-term finance. It played a pioneering role in the economic development of India, when capital markets were relatively underdeveloped and incapable of meeting the long-term requirements of the economy adequately.

With Pan-India presence across 17 locations in India, IFCI has been in the business of undertaking techno-economic and financial viability studies for projects and extending financial assistance for the last six decades. In 60 years of its existence, IFCI has evaluated more than 4800 projects, with a well-diversified sector portfolio and extended cumulative financial assistance of over INR 400 billion. Today besides providing long-term project-specific assistance, IFCI caters to the diverse needs of the Indian and Overseas Institutions by providing a host of Advisory and Consultancy Services in the areas of Project Appraisal, Risk Analysis, Credit Syndication, Placement Of Debt and Equity, Corporate Restructuring, Infrastructure Advisory and Legal Advisory.

Aside from its role in promoting industries and creating capacities, IFCI has also played a pivotal role in institution building. Through a host of subsidiaries and associate organizations, IFCI has emerged as a major player providing comprehensive financial solutions ranging from Project Finance, Merchant Banking, Insurance Broking, Venture Capital, Depository Services, Factoring Services, Asset Reconstruction and Securitization.

IFCI now aims to establish itself as a major player in Corporate Finance by leveraging its knowledge pool, quality human capital and institution building capabilities, in the buoyant economic landscape of the country with focus on manufacturing, infrastructure and services industry.

For Further Information, please contact :
Ms Pooja S Mahajan/ Anita Sahoo
Corporate Communications, IFCI
+91-11-41732555/41732558
pooja.mahajan@ifciltd.com
anita.sahoo@ifciltd.com