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Shares of IL&FS Engineering, and Transportation gained on group's restructuring plan to repay its liabilities. Shares of IL&FS Engineering and Construction Co surged as much as 16.9 per cent, while those of IL&FS Transportation Networks Ltd rose 9.3 per cent.
Group co Infrastructure Leasing & Financial Services Ltd (IL&FS) had said on Saturday that it will develop a “comprehensive” restructuring plan to repay its liabilities.
Debt-laden IL&FS has requested liquidity support from its promoters such as Life Insurance Corporation of India (LIC) and State Bank of India (SBI) to repay its debts since its planned assets sales will take some time to materialise.
Hari Sankaran, Vice Chairman & Managing Director, IL&FS, in a video message reiterated the institution's three pronged strategy, which was disclosed in an August 29 statement, of having a successful rights issue to generate and enable the company to recapitalise itself, sell assets, which it has built over the last few decades to repay debts, and pending asset sales get liquidity support from promoters to make debt repayments.
A series of defaults at IL&FS have roiled India's financial markets over the past month and sparked fears of a crisis in the non-banking financial services sector.
More than 417,000 ILFE shares traded vs 30-day average of around 264,300. ILFE stock had fallen 75.7 per cent this year as of last close, while that of ILFT tanked 73.1 per cent during the period.
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