IFCI announced today that it has scrapped the whole process of selling a 26% stake to consortium of Sterlite Industries and Morgan Stanley.

The company said, "The bidder (Sterlite Industries and Morgan Stanley) was putting to many conditions along with the bid which was not acceptable to the board."

The decision was taken after three days of discussion at the Board of IFCI on the conditions spelt out by the successful bidder -- a consortium of Sterlite Industries and Morgan Stanley.

The Sterlite-Morgan Stanley combine had offered a price of Rs110 per share for the 26% stake in IFCI as against Rs107 fixed by IFCI for converting debt into equity.

Atul Raj, CEO of IFCI said, “I am disappointed and now there is no possibility of re-bid in the current format.

While the sources said that the management control was the main reason for the deal to be called off at the last minute.

IFCI presently holds market cap worth Rs. 6390 crore. The firm had showed a net profit of Rs 497 crore for the quarter ended September 2007 as against Rs. 116 crore in same quarter of last year.

The stock closed yesterday at Rs. 100. It touched an intraday high of Rs. 107 and low of Rs. 98.