Mumbai: Infrastructure Leasing and Financial Services Ltd (IL&FS), the unlisted parent to a cluster of companies in various infrastructure verticals, failed to raise immediate funds from shareholders at a snap board meeting on Friday.

The company was seeking a loan of 3,000-4,000 crore from its shareholders Life Insurance Corporation of India (LIC) and State Bank of India after a group company, IL&FS Financial Services Ltd, defaulted on a short-term borrowing last month from Small Industries Development Bank of India. However, despite a day-long meeting, the board failed to arrive at a decision. The board will reconvene on 15 September, said a person aware of the development.

As of March 2018, IL&FS had about nine major shareholders, the biggest of whom are LIC, Orix Corp. of Japan, Abu Dhabi Investment Authority and Housing Development Finance Corp. Ltd.

Last week, IL&FS announced that its board had approved a rights issue of 4,500 crore to shore up capital in group entities. The company intends to issue 300 million equity shares at 150 each by 30 October. K. Ramchand, CEO of IL&FS, said the firm would raise another 4,500 crore in long-term borrowing from existing shareholders within the next one month.

The company’s net worth at the end of last fiscal year was 7,400 crore and consolidated debt across group companies stood at about 1 trillion. It is also facing a spate of debt downgrades by credit rating agencies.

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