IL&FS stock gets good response from investors after LIC's announcement

IL&FS group stocks ended mixed Wednesday, a day after state-owned insurer LIC said it will not allow debt-ridden IL&FS to collapse and explore options to revive it.

Shares of Infrastructure Leasing & Financial Services (IL&FS) Investment Managers soared 9.92 percent to end at Rs 8.20, its highest trading permissible limit, on the BSE.

On the other hand, shares of IL&FS Engineering and Construction Company fell by 3.11 percent to close at Rs 14 and IL&FS Transportation Networks went down by 1.47 percent to settle at Rs 23.40.

Shares of IL&FS group companies had surged up to 12 percent Tuesday.

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.

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 Chennai-Nashri tunnel), is sitting on a debt pile of around Rs 91,000 crore.