IL&FS Group shares in focus; ITNL, IL&FS Engineering up 20%

Shares of Infrastructure Leasing & Financial Services (IL&FS) Group companies have rallied by up to 20% after the IL&FS said that it will develop a comprehensive restructuring plan to repay its liabilities.

“IL&FS in its board meeting on Saturday appointed global professional services firm Alvarez & Marsal to prepare a comprehensive restructuring plan for the group,” the Business Standard reported.

Among the individual stocks, IL&FS Engineering and Construction Company have locked in upper circuit of 20% at Rs 16.02 on the BSE. IL&FS Transportation Networks (ITNL) was frozen 20% at Rs 27.05, while IL&FS Investment Managers locked upper circuit of 10% at Rs 8.58 on the BSE. All these stocks hit their multi-year lows during last month, following serial defaults by the IL&FS and its subsidiaries to lenders.

IL&FS has also moved the NCLT Mumbai seeking to restructure its debt under Section 230 of the Companies Act 2013. IL&FS shareholders led by LIC has decided to chip in Rs 45 billion via its rights issue, which is expected to close by October end.

A source said the government is looking to appoint a new management, which would turn around the company, added report. CLICK HERE TO READ FULL REPORT