INSUBCONTINENT EXCLUSIVE:
MUMBAI: Debt laden ILFS is likely to default on payment of Rupees 1,000 crore commercial papers in September as it struggles to raise
capital and deleverage its balance sheet
to discuss strategies including raising authorised capital from promoter group, equity through rights issue and additional lines of credit
and asset monetisation towards various projects.
The board had discussed raising lines of credit of Rupees 3,500 crore from Life Insurance
31, 2018, Life Insurance Corporation of India (LIC) and ORIX Corporation Japan were the largest shareholders in ILFS with their stake
holdings at 25.34 per cent and 23.54 per cent respectively
Other prominent shareholders include Abu Dhabi Investment Authority ADIA (12.56 per cent stake), HDFC (9.02 per cent), Central Bank of India
downgraded NCDs of ILFS to BB from AA+ on higher levels of debt and inability to raise funds as quickly as is needed
The group has around Rupees 1 lakh crore worth of debt on its books
It has identified assets for sale
The process will take 3-6 weeks.
Further investments by large promoters will depend on the availability of line of credit from lenders
The company is looking to raise Rupees 4,500 crore through rights issue and it expects to reduce overall debt by Rupees 30,000 crore by
offloading some of its assets
It has already defaulted on payment of Rupees 450 crore.
