NEW DELHI: Shares of ILFS group of companies got a fresh lease of life on Tuesday after LIC said that it won't let ILFS collapse.
Shares of ILFS Engineering and Construction Company jumped 12.02 per cent, while ILFS Transportation Networks clocked a gain of 5.74 per cent on BSE.
Shares of ILFS Investment Managers (down 0.13 per cent) settled almost flat.
LIC, which holds over 25 per cent stake in ILFS said that all options were open and assured that it would take all possible steps to avoid contagion spreading to the market.
ET Now reported LIC chairman VK Sharma as saying that they will ensure that ILFS does not collapse.
He did not rule out raising stake in ailing ILFS.
For the third time in a month, ILFS Financial Services on Monday defaulted on interest payments on commercial papers, a report by PTI said.
Earlier on Monday, media reports emerged that genuine dues owed by state-owned bodies such as NHAI will be paid to the embattled ILFS and large shareholders of the financial firm, including LIC, may also be part of the settlement process.