New Delhi Sep 17 (IANS) Finance Minister Arun Jaitley on Monday said that the IL&FS board and its stakeholders will deal with the debt crisis facing the company.
When asked about the IL&FS issue Jaitley said: "I am not making any comments on this. Let their board and stakeholders deal with the matter."
Jaitley was responding to reporters queries on reports appearing earlier on Monday which said that the Finance Ministry was approached after the IL&FS key stakeholder the state-run Life Insurance Corporation and others rejected a Rs 3 000 crore loan facility.
According to these reports the company requires this amount to avert default on its Commercial Paper (CP) obligations and a ratings downgrade.
LIC is the largest shareholder in IL&FS with a 25.34 per cent stake while the state-owned State Bank of India has a 6.42 per cent stake.
The two financial institutions are in turn under the supervision of the Department of Financial Services (DFS).
The reports however said that the Ministry has taken an adverse view of the proposal by IL&FS to stave-off the looming debt crisis.
As part of its fund-raising plans the company s board had on August 29 approved a Rights Issue of 30 crore equity shares at Rs 150 per share aggregating to Rs 4 500 crore to shore up its capital. The process would be completed by October 30 the company had said in a statement earlier.
"As on March 31 2018 IL&FS net worth was Rs 7 400 crore. In addition the Board approved the re-capitalization of group companies to the extent of Rs 5 000 crore in IL&FS Financial Services IL&FS Transportation IL&FS Energy IL&FS Environment and IL&FS Education " the company said.
"The Board also approved the Company s specific asset divestment plan based on which IL&FS expects to reduce its overall debt by Rs 30 000 crore. Out of a portfolio of 25 projects identified for sale firm offers have already been received for 14 projects."
The August 29 statement had also said that the company expects to complete its divestment plan over the next 12 to 18 months in a systematic and professional way to fulfil its commitments.
The group has around Rs 1 lakh crore worth of debt on its books.
IL&FS companies form an ecosystem of expertise across infrastructure finance and social and environmental services
Initially promoted by the Central Bank of India Housing Development Finance Corporation Limited and Unit Trust of India IL&FS was incorporated in 1987.
Over the years it has inducted institutional shareholders including SBI LIC ORIX Corporation of Japan and Abu Dhabi Investment Authority (ADIA).
As on March 31 2018 LIC and ORIX Corporation are the largest shareholders in IL&FS with their stake holding at 25.34 per cent and 23.54 per cent respectively. Other prominent shareholders include ADIA (12.56 per cent stake) HDFC (9.02 per cent stake) CBI and (7.67 per cent stake) and SBI (6.42 per cent stake).

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