Many financial institutions have submitted the expression of interest for stake in IFCI. IFCI plans to disinvest 26% share to a strategic investor. 10 companies who have submitted EoI includes IDFC, GE Capital, Kotak Mahindra Bank.

Standard Chartered Bank and Sterlite Industries are among other parties who are interested to acquire stake in IFCI. In year 2003, when IFCI was facing financial crisis, Government wanted to take over IFCI via PNB. IFCI was having huge loans which were causing losses for the company for 5 consecutive years. However, in recent quarterly results, IFCI posted net profit of Rs 246 crore.

Current stake holders in IFCI include Morgan Stanley (2.5%), Goldman Sachs (3.3%), LIC (8.4%) and IDBI (5.01%). IFCI stock has seen a rise of more than 5 times after its plans to sell stake to some strategic partner.

IFCI will approve EoI offers by consulting Ernst & Young by 25 September. The request for proposal (RFP) would be floated by October 1. The approved parties will be allowed to bid for the stake in IFCI. Sealed bids for 26 per cent stake can be submitted by end of November, 2007.