No taker yet for IL&FS Financial Services; high NPAs keep investors away

Investors said the financials of IFIN for the financial year 2018 were not looking good

IL&FS Financial Services (IFIN), a subsidiary of beleaguered infrastructure financing company IL&FS put up for sale three weeks ago, has failed to find any taker as prospective investors are worried over its high bad debt and recent defaults. 

IFIN’s sagging financials and the Reserve Bank of India’s (RBI’s) recent diktat banning the financial services firm from accessing commercial paper market following a default have changed the mood among the prospective buyers. “No one is interested in catching a falling knife,” said a source close to the development.

“The NPAs and high exposure to group companies has made the company an