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IL&FS Comes Up With Strategies To Restore Stability


Infrastructure Leasing & Financial Services Ltd (IL&FS) in its AGM (annual general meeting) came up with a 3-point strategy to recover after defaulting debt obligations. The plans include raising funds from its shareholders and offloading of assets.

IL&FS Comes Up With Strategies To Restore Stability

The first of its strategies is completing a rights issue that would help the company raise Rs 4,500 crore to re-capitalise itself. According to a PTI report, IL&FS' major shareholders, that is LIC, Orix Corp and SBI are going to subscribe to the proposed rights issue. LIC holds 25.34 percent stake in the lender, making it the largest shareholder.

The second move would be to sell off some of its assets built in the past few decades to repay its creditors and the third being a liquid allocation to support repayment to debtors until assets sales begin. The rights issue is expected by October-end.

IL&FS and its subsidiaries with a debt of about Rs 90,000 crore, fuelled fears of a liquidity crisis in the financial markets after making defaults. The RBI is closing watching the situation to improve the cash conditions. It met with the company's top shareholders on Friday to discuss the action plan.

Read more about: il ampfs
Story first published: Saturday, September 29, 2018, 16:18 [IST]
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