IL&FS shares rise over 12 pct on LIC support
- Country:
- India
Shares of IL&FS group companies surged up to 12 percent Tuesday after state-owned insurer LIC said it will not allow debt-ridden IL&FS to collapse and explore options to revive it.
The scrip of IL&FS Engineering and Construction Company soared 12.02 percent and IL&FS Transportation Networks jumped 5.74 percent on BSE.
Shares of IL&FS Investment Managers, however, ended marginally down 0.13 percent.
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. This was the third default by the company.
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 and had been downgraded to junk status by rating agencies following the default.
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