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."
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Karnataka unit of Congress posts Mahatma Gandhi quote emphasising peace, deletes
Bengaluru (PTI): The Karnataka unit of Congress on Wednesday posted a Mahatma Gandhi's quote emphasising peace on its social media handle and deleted it later.
"The most powerful weapon of mankind is peace - Mahatma Gandhi," the Congress posted on its handle in social media 'X'.
They posted it hours after India carried out air strike at nine locations inside Pakistan and Pakistan Occupied Kashmir (POK) as part of its 'Operatioon Sindoor' to avenge the killing of 26 tourists in a terrorist attack at Pahalgam in Jammu and Kashmir.
The party later lauded the Indian Air Force in another post.
"The Indian Air Force (IAF), widely recognised as one of the world's strongest air forces gave a befitting reply to the cowardly #PahalgamTerroristAttack. We stand with the govt, we stand with our security forces. #OperationSindoor," Congress said.
Karnataka Deputy Chief Minister and Congress state president D K Shivakumar called India's response to Pahalgam "befitting".
"#OperationSindoor is a befitting reply to the cowardly Pahalgam terror attack. We stand with the govt, we stand with our security forces. Jai Hind," Shivakumar said in a post on 'X'.
The BJP state chief B Y Vijayendra too hailed India's action.
"In a clinical and precise operation, the Indian Army has begun avenging the targeted killings of Hindus in Pahalgam. Jai Hind!" Vijayendra said on 'X'.
