News digest: No decision on IL&FS liquidity, below normal rainfall and more

From IL&FS board appointing Alvarez & Marsal to prepare a plan for the group to Bandhan Bank listing options to cut promoters' shareholding, BS brings you up to date with latest news

No decision on IL&FS liquidity infusion yet; board plans restructuring

With no clarity on immediate liquidity infusion and rights issue by shareholders, cash-strapped Infrastructure Leasing & Financial Services (IL&FS) in its board meeting on Saturday appointed global professional services firm Alvarez & Marsal to prepare a comprehensive restructuring plan for the group.  

Hari Sankaran, vice-chairman and MD, IL&FS, said in a video statement that the board took four important decisions. Alvarez & Marsal would develop a detailed restructuring plan for the group to demonstrate to shareholders and lenders that it was self-sufficient in repaying its liabilities. So far, the IL&FS management had been working on its revival plan. Continue reading… 

Monsoon starts withdrawing, rainfall 9% below normal, show IMD data

The southwest monsoon has started withdrawing from west Rajasthan and the Kutch region of Gujarat, the India Meteorological Department (IMD) said on Saturday, marking the end of its four-month journey over India.

The season is expected to end with a cumulative rainfall deficiency of 9 per cent. This means the country registered below-normal rainfall in 2018, contrary to the IMD’s forecast of normal rain. Twelve of the 36 meteorological subdivisions recorded deficient rainfall, while the rest witnessed normal to excess rain. In total, 38 per cent of the 662 districts received below-normal rain. Read on...

After RBI notice, Bandhan Bank lists options to cut promoters' shareholding

A day after the Reserve Bank of India (RBI) put curbs on Bandhan Bank for not complying with shareholding norms, the lender laid out several options, including inorganic growth, to reduce the promoters’ stake, in a conference call with analysts on Saturday. 

The bank would consider buyouts in the micro, small and medium enterprises (MSME), housing finance, and microfinance institution (MFI) space, said Chief Financial Officer Sunil Samdani. The bank, he said, would also look at entering the mutual fund and insurance business at the holding company level to reduce the promoters’ shareholding. Continue reading...

Elon Musk believed he had verbal agreement with Saudis for Tesla buyout

Tesla Inc. CEO Elon Musk believes he had a verbal agreement in place with Saudi Arabia’s sovereign-wealth fund to help finance a plan to take the automaker private, according to a person familiar with the matter, a contention that could preview how he will fight regulators’ accusation that he misled shareholders.

Mr. Musk was sued Thursday by the Securities and Exchange Commission, which alleged that he misled investors when he tweeted last month that he had funding secured to lead a Tesla buyout. The agency, which is seeking to oust Mr. Musk from Tesla, said in its complaint that he “knew that he had never discussed a going-private transaction at $420 per share with any potential funding source.” Read more...