INSUBCONTINENT EXCLUSIVE:
Abu Dhabi Investment Authority is unlikely to participate in the rights issue of the debtladen Infrastructure Leasing Financial Services
(ILFS), said three people aware of the development
In its annual general meeting on September 29, ILFS is going to propose capital expansion through rights issue to raise Rs 4,500 crore and
in the know of the development
owns 12.56 per cent stake in ILFS and is the third-largest shareholder of the company after Life Insurance Corporation and ORIX Corporation,
have assured shareholders of helping the company in troubled times
Apart from equity of Rs 4,500 crore, the company is also looking for a credit line of Rs 3,500 crore from the two shareholders
shareholder on the condition of anonymity.
An SBI Capital Markets report has given a valuation of Rs 350 a share, while the rights issue is
done at Rs 150 a piece, which is a steep discount to the fair value.
ILFS had a net worth of Rs 7,400 crore as on March 31, 2018
In addition, the board has also approved re-capitalisation of Rs 5,000 crore in ILFS Financial Services, ILFS Transportation, ILFS Energy,
Atlantia of Italy, to sell a portfolio of toll-road assets for about $1.2 billion to reduce its debt.
