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The Reserve Bank of India top-brass met large shareholders of Infrastructure Leasing & Financial Services (IL&FS) on Friday regarding the NBFC’s revival and capital infusion.
Deputy Governors NS Vishwanathan and MK Jain met representatives of IL&FS’ two largest shareholders — Orix Corporation of Japan (25.54 per cent stake) and Life Insurance Corporation of India (25.34 per cent). Details regarding the outcome of the meeting were not available at the time of going to print.
Sources say LIC, Orix and SBI will likely subscribe to the proposed rights issue of IL&FS.
On August 29, the Board of Directors of IL&FS approved a rights issue of 30 crore equity shares at ₹150 per share aggregating ₹4,500 crore. The rights issue would be completed by October 30.
IL&FS and some of its subsidiaries are facing trouble due to rating downgrades and inability to service debt which is seen at ₹91,000 crore as of March-end. This hit the financial markets in the past week with mutual funds selling the debt of NBFCs in the secondary market at higher yields to meet redemption pressures.
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