IL&FS group rises up by 20 pct

Shares of IL&FS group companies surged up to 20 per cent Monday amid the government moving National Company Law Tribunal (NCLT) for a 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 a 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 a 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 a comprehensive solution for the benefit of all stakeholders.

IL&FS, where LIC is the largest shareholder with a 25.34 per cent stake, has a debt burden of over Rs 90,000 crore.