Mumbai: Shares of IFCI Ltd on Friday rose by over 12 percent after the government restructured the state-owned company's board by nominating two new directors.
Following the move, shares of the company shot up by 12.26 percent to Rs 38.45 during the day on the BSE. It finally ended at Rs 38.15, up 11.39 percent from its previous close. At NSE, IFCI ended 12.12 percent higher at Rs 38.40.
"Government restructured the IFCI board which saw huge upside in the stock," Kishor Ostwal, CMD, CNI Research said.
Four existing members have already stepped down from the board, while further changes are likely soon.
A decision to restructure the board was taken late last night and comes on the back of government raising its stake IFCI to 55.57 percent.
The government has nominated two directors -- Anurag Jain, Joint Secretary, Ministry of Finance, in the Department of Financial Services and VK Chopra, Deputy Secretary -- on the IFCI Ltd board, the company said in a filing to the BSE.
Meanwhile, rally in the stock sharply outperformed the broader market gain where the Sensex ended at 19,784.08, up 19.30 points.