IL&FS stock skyrockets after appointment of new board

Shares of IL&FS group companies continued to remain in huge demand Wednesday, surging up to 20 per cent.

The scrip of IL&FS Engineering and Construction Company zoomed 19.79 per cent, IL&FS Transportation Networks surged 19.29 per cent and IL&FS Investment Managers soared 9.91 per cent on BSE.

Shares of IL&FS group companies had surged up to 20 per cent Monday also.

In a rare move, the government superseded the board of IL&FS on Monday against the backdrop of debt defaults by some of its group entities that triggered fears of a liquidity crunch.

As per its latest balance sheet, IL&FS Group has the infrastructure and financial assets exceeding Rs 1,15,000 crore and is facing tremendous debt pressure and struggling to service around Rs 91,000 crore in debt.

Meanwhile, the BSE 30-share barometer plummeted 550.51 points or 1.51 per cent to end at 35,975.63.

"Despite the government’s decisive move about IL&FS, the markets are under relentless pressure on the back of crude oil touching multi-year highs and the rupee making fresh all-time lows," said Jagannadham Thunuguntla, Senior VP and Head of Research (Wealth), Centrum Broking Ltd.

Domestic markets were closed on Tuesday on account of 'Gandhi Jayanti'.

(With inputs from agencies.)