IL&FS Group's Board meets to seek immediate financial support: Sources
Mumbai, Sep 7 : The Board of cash-strapped IL&FS has sought immediate financial support from its key shareholders, sources said.
Accordingly, the Board met here on Friday and sought around Rs 3,000 crore loan from key shareholders including Life Insurance Corporation of India (LIC).
Besides, sources said the Board informed the shareholders of the brewing financial crisis at the company and the need to raise additional funds.
As per an earlier statement of the company, the Board had approved a plan to approach shareholders for support to the extent of Rs 9,000 crore.
On August 29, the company's board, among other fund-raising plans, approved a Rights Issue of 30 crore equity shares at Rs 150 per share aggregating to Rs 4,500 crore to shore up its capital and the process would be completed by October 30, the company had said in a statement.
"As on March 31, 2018, IL&FS net worth was Rs 7,400 crore. In addition, the Board approved the re-capitalization of Group companies to the extent of Rs 5,000 crore in IL&FS Financial Services, IL&FS Transportation, IL&FS Energy, IL&FS Environment, and IL&FS Education," the company said.
"The Board also approved the Company's specific asset divestment plan based on which IL&FS expects to reduce its overall debt by Rs 30,000 crore. Out of a portfolio of 25
projects identified for sale, firm offers have already been received for 14 projects."
The August 29 statement had also said that the company expects to complete its divestment plan over the next 12 to 18 months in a systematic and professional way to fulfil its commitments.
The group has around Rs 1 lakh crore worth of debt on its books.
As on March 31, 2018, LIC and ORIX Corporation Japan were the largest shareholders in IL&FS with their stake holding at 25.34 per cent and 23.54 per cent respectively, while Abu Dhabi Investment Authority (ADIA), HDFC, CBI and SBI stake holdings are at 12.56 per cent, 9.02 per cent, 7.67 per cent and 6.42 per cent respectively.
Last month, ICRA had downgraded the long-term rating for IL&FS.
"The rating revisions take into account the company's elevated debt levels owing to the funding commitments towards Group ventures," ICRA had said in a note on August 7.
"While IL&FS has recognised opportunistic asset monetisation as a key strategic initiative, the actual progress on the same has hitherto been slow, resulting in high gearing for the company, albeit within the regulatory limit."
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Thunderstorm hits Lucknow, IMD issues red alert across multiple UP districts
Lucknow: Shortly after the India Meteorological Department issued a red alert warning of severe weather conditions in the region, a sudden thunderstorm hit Lucknow and adjoining districts on Monday morning.
The Indian Express reported that the skies turned dark around 8:45 am as strong winds lashed parts of the city. Incidents of tree falls were reported from several locations, disrupting traffic and normal movement.
The weather department said thunderstorms accompanied by lightning, hail and gusty winds of 40 to 60 kmph are likely to continue over the next three hours across several districts.
A red alert has been issued for districts including Unnao, Barabanki, Hardoi, Sitapur, Bahraich, Gonda, Shravasti and Lakhimpur Kheri, where moderate thunderstorms with hail and strong winds may damage trees, power lines and temporary structures.
An orange alert is in place for Rae Bareli, Amethi, Kanpur Nagar, Ayodhya, Kanpur Dehat, Auraiya, Kannauj, Farrukhabad, Shahjahanpur and Balrampur, where thunderstorms with lightning and winds up to 60 kmph could lead to localised disruptions.
Major parts of the state remains under yellow alert, including districts such as Prayagraj, Agra, Bareilly, Aligarh and Moradabad, where light rain, lightning and winds of 30 to 40 kmph are expected.
Authorities have advised residents to remain indoors, avoid open areas and trees during lightning, and secure loose objects.
