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Shares of two of IL&FS group companies defied the broader market sentiment and gained as much as 10 per cent on the bourses after the newly appointed board said it will take all necessary steps to preserve the value of the group.
IL&FS Engineering and Construction Company stock touched its upper circuit limit of Rs 25.32, up 10 per cent over its previous closing price. Shares of IL&FS Investment Managers also witnessed similar trend and jumped by 5 per cent to touch its upper circuit limit of Rs 10.39 on the BSE.
However, stocks of IL&FS Transportation Networks opened on a weak note and then lost further ground to trade at Rs 30.25, down 10 per cent over its last close.
The government-appointed board of crippled infra lender IL&FS group, which held a marathon five-hour meeting here on Thursday, had said that it will take all necessary steps to preserve the value of the group and its 348 subsidiaries. It also said that the board will meet regularly to draft a roadmap for the future for the systematically important entity.
Uday Kotak, MD & CEO, Kotak Mahindra Bank, who was elected non-executive chairman of IL&FS, however, hinted that the crisis at the infra lending and engineering conglomerate is much more complex than earlier thought as the number of its subsidiaries and associates have more than doubled to 348, most of which have negative net worth.
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