The government has decided to infuse Rs 500-crore capital in Industrial Finance Corporation of India (IFCI) ahead of the company’s proposed restructuring and consolidation into a group.

With the infusion, the government of India’s holding in the company is expected to further increase from 71.72 percent. The Department of Financial Services (DFS), Ministry of Finance, last month in-principle approved ‘Consolidation of IFCI Group’ which entails merger or amalgamation of IFCI and StockHolding Corporation of India and other group companies.

StockHolding Corporation of India, IFCI Factors, IFCI Infrastructure Development and IIDL Realtors will merge with IFCI. Further, StockHolding Services, IFCI Financial Services, IFIN Commodities and IFIN Credit will be merged into a single entity, which will be a direct subsidiary of the consolidated listed entity.