NEW DELHI: Shares of IL&FS group of companies got a fresh lease of life on Tuesday after LIC said that it won't let IL&FS collapse.
Shares of IL&FS Engineering and Construction Company jumped 12.02 per cent, while IL&FS Transportation Networks clocked a gain of 5.74 per cent on BSE. Shares of IL&FS Investment Managers (down 0.13 per cent) settled almost flat.
LIC, which holds over 25 per cent stake in IL&FS said that all options were open and assured that it would take all possible steps to avoid contagion spreading to the market.
ET Now reported LIC chairman VK Sharma as saying that they will ensure that IL&FS does not collapse. He did not rule out raising stake in ailing IL&FS.
For the third time in a month, IL&FS Financial Services on Monday defaulted on interest payments on commercial papers, a report by PTI said.
Earlier on Monday, media reports emerged that genuine dues owed by state-owned bodies such as NHAI will be paid to the embattled IL&FS and large shareholders of the financial firm, including LIC, may also be part of the settlement process.
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