Shareholders’ value in IFCI ltd.

Finance is the life blood of any business which is needed not only to establish the business but also to ensure its survival and growth. Traditionally profit maximization was accepted criterion for making efficient economic decisions. In the post 1990 liberalization era maximizing the value of a company is emerging as the prime goal of corporate financial management. It is also known as maximization of wealth of the owners which is simply modified form of profit maximization. Financial management should consider the interest of stakeholders as well as shareholders. The main objective of this study is to measure the shareholders value in IFCI Ltd. A descriptive-analytical research methodology is applied. Various statistical techniques are used in this study Among the different method to measure the shareholders value, Economic Value Added Method is used. The study concludes that IFCI Ltd neither protected nor maintained the shareholders interest during the study period due to poor financial positions. Some concrete suggestion has also been given to improve the financial position and increase the shareholders value so that IFCI Ltd can prove its dignity being the first financial institution of independent India.