The Reserve Bank of India is set to meet shareholders of beleaguered Infrastructure Leasing Financial Services (ILFS) on Friday to understand how the infrastructure lender and developer proposes to deleverage its balance sheet, a shareholder said.RBI deputy governor has called shareholders for a meeting at 3 pm on Friday, the ILFS shareholder told ET on condition of anonymity.Shareholders, including Life Insurance Corporation of India (LIC), State Bank of India (SBI), ORIX Corporation Japan, HDFC and Central Bank of India, are expected to attend the meeting that will also discuss their capital infusion plan as well as their concerns.LIC, the largest shareholder in ILFS, had assured the market that it will not allow the debtladen company to collapse after a meeting with finance minister Arun Jaitley on Wednesday.ILFS board has called an annual general meeting on Saturday to discuss capital expansion plans through rights issue and reduction in debt.
The company is looking to raise Rs 4,500 crore through the rights issue, besides a credit line of Rs 3,500 crore from LIC and SBI.ILFS Group had defaulted on Rs 282 crore bank loan with interest and Rs 103 crore term deposit since September 12.
On Thursday, it defaulted on short-term deposit of Rs 53 crore.V K Sharma, chairman of LIC, had on Wednesday said the insurer was open to all options, including increasing its stake, to help the company overcome the current situation.
LIC owns 25.34 per cent stake in ILFS.It will have to put in Rs 1,200 crore in the rights issue to maintain its shareholding level.ORIX, the second largest shareholders in ILFS with 23.54 per cent stake, is also expected to raise its stake in the rights issue.