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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Right to life extends to all: SC questions Assam on detention of foreign nationals
New Delhi: The Supreme Court criticised the Assam government on Wednesday for failing to justify the detention of foreign nationals in transit camps and demanded an explanation from the state’s chief secretary, who has been asked to appear via virtual mode during the next hearing.
A bench comprising Justices Abhay S Oka and N Kotiswar Singh emphasised that the fundamental right to life extends to all individuals, including foreigners. The court directed the state to take immediate steps to deport the detainees to their respective countries.
The bench was hearing a case concerning 270 individuals held in detention centres or transit camps in Assam. It observed that some detainees had been languishing in the camps for over a decade. "The affidavit submitted by the state fails to provide reasons for detaining these individuals and does not detail the steps taken for their deportation. This is a gross violation of the court's orders," the bench remarked.
The court had previously granted six weeks for the state government to file a compliance affidavit. Dissatisfied with the lack of a detailed response, the court instructed the chief secretary to clarify the non-compliance.
The Assam government’s counsel informed the court that the deportation of illegal migrants is coordinated through the Union government. He explained that the state is responsible for providing complete details, including contact information, to the Ministry of External Affairs, which verifies the identities of the migrants via diplomatic channels.
Earlier, the Supreme Court had directed the Assam State Legal Services Authority to inspect the Matia transit camp, focusing on hygiene and food quality standards.
