IL&FS group stocks soar up to 20% as govt intervenes to change management

 Shares of IL&FS group companies surged up to 20 per cent Monday amid the government moving National Company Law Tribunal (NCLT) for change of management at the crisis-hit firm IL&FS.

The scrip of IL&FS Engineering and Construction Company surged 20 per cent, IL&FS Transportation Networks shares zoomed 19.51 per cent and IL&FS Investment Managers soared 10 per cent on BSE. The government has moved NCLT for change of management at the crisis-hit IL&FS, a senior official said Monday. Debt defaults by certain group entities of diversified IL&FS have triggered fears of liquidity crisis in the financial markets and RBI has been taking steps to improve the overall cash situation.

Sources close to IL&FS said it is likely to support the application as it will help resolve all the pending issues and reach at a comprehensive solution for the benefit of all stakeholders. IL&FS, where LIC is the largest shareholder with 25.34 per cent stake, has a debt burden of over Rs 90,000 crore.