How IL&FS plans to fix the mess it is in right now
The beleaguered IL&FS is planning to divest non-core assets to meet short-term funding requirements, says an ETNow report.
The infrastructure lender and developer may sell 14 out of its existing 19 road projects. It's working with the RBI and the government for legal approval to the asset sale, the report added.
It also plans to raise Rs 16,000 crore from sale of asset in its transport arm.
The company, whose AGM concluded today, expects its right issue by October-end. India's biggest institutional investor LIC and largest lender SBI have agreed to participate in Rs 4,500 crore rights issue, according to the report.
IL&FS, where LIC is the largest shareholder with 25.34 per cent stake, has a debt load of over Rs 90,000 crore.
Earlier this week, IL&FS Financial Services defaulted on interest payment and fixed deposits. This was fourth in a series of defaults by the group entity.
The government is monitoring the situation of the debt-ridden IL&FS and would take appropriate action to ensure there is no undue impact on the financial system, Economic Affairs Secretary Subhash Garg said on Friday.
Debt defaults by certain group entities of diversified IL&FS have triggered fears of a liquidity crisis in the financial markets and the RBI has been taking steps to improve the overall cash situation.