Mumbai : The Reserve Bank of India (RBI) will meet the large shareholders of Infrastructure Leasing & Finance Services on Friday to discuss a turnaround plan for the crisis-ridden infra major, RBI sources said.
LIC and Orix Corporation of Japan, which have 25.34 and 23.54 per cent stake in the company, respectively, are expected to attend the meeting to which minority shareholders, which include two state-run banks, and HDFC have not been called. “The officials concerned will meet the large shareholders of IL&FS Friday,” an RBI source said.
Earlier in the day, two banking sources said they have been told that Friday’s meeting has been cancelled.
“Friday’s meeting has been cancelled as the regulator want to know what is the course of action and what is the roadmap that the firm is taking,” one of the shareholders, said.
IL&FS’s annual general meeting is scheduled for September 29. The IL&FS Group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27. It has over Rs 91,000 crore in debt.
The company needs an immediate capital infusion of Rs 3,000 crore and is planning a Rs 4,500-crore rights issue. At a meeting held earlier this month, the key shareholders of the company, including LIC, SBI and HDFC, had kept a pre-condition for it to raise funds through its assets or non-core businesses, before any additional money could be pumped in. There have been reports that IL&FS has even put on block its headquarters in the city for around Rs 1,300 crore.
Independent director quits
IL&FS Engineering and Construction Company (IECCL) said its independent director Debabrata Sarkar has resigned from the post effective September 26. IECCL is one of the over 250 subsidiaries of the IL&FS group.