Reserve Bank of India to meet large shareholders of IL&FS today to discuss turnaround plan
The Abu Dhabi Investment Authority, HDFC, Central Bank of India and SBI hold 12.56 percent, 9.02 percent, 7.67 percent and 6.42 percent, respectively in IL&FS which collectively owe over Rs 91,000 crore to lenders.
Mumbai: The Reserve Bank will meet the large shareholders of Infrastructure Leasing & Finance Services (IL&FS) on Friday to discuss a turnaround plan for the crisis-ridden infra major, the central bank sources said.
LIC and Orix Corporation of Japan, which have 25.34 and 23.54 percent stake in the company, respectively, are expected to attend the meeting to which minority shareholders, which include two state-run banks, and HDFC have not been called.
"The officials concerned will meet the large shareholders of IL&FS Friday," an RBI source told PTI. Earlier in the day, two banking sources said they have been told that Friday's meeting has been cancelled.
"Friday's meeting has been cancelled as the regulator want to know what is the course of action and what is the roadmap that the firm is taking," one of the shareholders, said.
Representational image. Reuters
The Abu Dhabi Investment Authority, HDFC, Central Bank of India and SBI hold 12.56 percent, 9.02 percent, 7.67 percent and 6.42 percent, respectively in IL&FS which collectively owe over Rs 91,000 crore to lenders.
Meanwhile, IL&FS's annual general meeting is scheduled for 29 September.
The IL&FS Group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since 27 August. It has over Rs 91,000 crore in debt.
The company needs an immediate capital infusion of Rs 3,000 crore and is planning a Rs 4,500-crore rights issue.
At a meeting held earlier this month, the key shareholders of the debt-ridden company, including LIC, SBI and HDFC, had kept a pre-condition for it to raise funds through its assets or non-core businesses, before any additional money could be pumped in.
There have been reports that IL&FS has even put on block its headquarters in the city for around Rs 1,300 crore.
On 4 September, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while its subsidiary has also defaulted Rs 500 crore dues to the development finance institution.
On Monday, IL&FS Financial Services also defaulted on repayment of commercial papers due that day.
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