IL&FS group stocks end mixed, IL&FS Investment surges 10%

IL&FS group stocks ended mixed Wednesday, a day after state-owned insurer LIC said it will not allow debt-ridden IL&FS to collapse and explore options to revive it.

IL&FS group stocks end mixed, IL&FS Investment surges 10%
Infrastructure Leasing & Financial Services. Image Source: Reuters
By PTI
Updated: Wed, Sep 26, 2018
07:34 pm
New Delhi, PTI
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IL&FS group stocks ended mixed Wednesday, a day after state-owned insurer LIC said it will not allow debt-ridden IL&FS to collapse and explore options to revive it. Shares of Infrastructure Leasing & Financial Services (IL&FS) Investment Managers soared 9.92 per cent to end at Rs 8.20, its highest trading permissible limit, on the BSE.

On the other hand, shares of IL&FS Engineering and Construction Company fell by 3.11 per cent to close at Rs 14 and IL&FS Transportation Networks went down by 1.47 per cent to settle at Rs 23.40. Shares of IL&FS group companies had surged up to 12 per cent Tuesday.

Life Insurance Corporation (LIC) has the largest shareholding in IL&FS. IL&FS Financial Services, a group company of IL&FS defaulted on one of its commercial paper (CP) issuances due for repayment Monday.

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The infrastructure development and finance group has been facing liquidity issues for some time. IL&FS, which is credited for building the longest tunnel in the country (the Chenani-Nashri tunnel), is sitting on a debt pile of around Rs 91,000 crore.