Equity Investments

IL&FS group stocks rally up to 8% on fund raising plans

Shares of IL&FS group companies rallied up to 8 per cent in morning deals on Tuesday after the troubled infra lender put its entire domestic road assets on the block as it seeks to raise funds to repay the debt.

IL&FS Investment Managers was trading 7.67 per cent up at Rs 6.88 at around 9.50 am (IST) on BSE, while IL&FS Transportation was up 5 per cent at Rs 11.55. IL&FS Engineering and Construction was trading 4.98 per cent up at Rs 14.13, while the benchmark BSE Sensex was down 144 points, or 0.40 per cent, at 36,125 at around the same time.

In order to ascertain market interest and to examine feasibility of maximisation of value in an orderly and transparent manner, the IL&FS board, acting on behalf of its relevant subsidiaries including IL&FS Transportation Networks Limited (ITNL) initiated the process of exploring divestment of IL&FS group’s equity stakes in road assets, the group said in a statement.

The assets being sold include seven operational annuity based projects in various parts of the country, stretching over 1,774 lane kms and eight operating toll-based projects aggregating around 6,572 lane kms.

It also includes four under construction road projects which would aggregate 1,736 lane kms on completion.

The assets being put on the block also include a sports complex in Thiruvananthapuram, and three other assets and businesses which are engineering procurement and construction and operations and maintenance businesses of IL&FS Transportation Networks, IL&FS Transporation said in a BSE filing.

Leave a Comment

Your email address will not be published.

You may also like