INSUBCONTINENT EXCLUSIVE:
The beleaguered ILFS is planning to divest non-core assets to meet short-term funding requirements, says an ETNow report.
The infrastructure
lender and developer may sell 14 out of its existing 19 road projects
It's working with the RBI and the government for legal approval to the asset sale, the report added.
It also plans to raise Rs 16,000
crore from sale of asset in its transport arm.
The company, whose AGM concluded today, expects its right issue by October-end
India's biggest institutional investor LIC and largest lender SBI have agreed to participate in Rs 4,500 crore rights issue, according to
the report.
ILFS, where LIC is the largest shareholder with 25.34 per cent stake, has a debt load of over Rs 90,000 crore.
Earlier this
week, ILFS Financial Services defaulted on interest payment and fixed deposits
This was fourth in a series of defaults by the group entity.
The government is monitoring the situation of the debt-ridden ILFS and would
take appropriate action to ensure there is no undue impact on the financial system, Economic Affairs Secretary Subhash Garg said on
Friday.
Debt defaults by certain group entities of diversified ILFS have triggered fears of a liquidity crisis in the financial markets and
the RBI has been taking steps to improve the overall cash situation.
