Mumbai: Life Insurance Corporation, India’s largest state-run insurer, is open to participating in a rights issue by debt-ridden Infrastructure Leasing & Financial Services (IL&FS), the insurer’s chairman V.K. Sharma told reporters on Friday.

IL&FS is a major infrastructure finance and construction company, which has built up big debts and is now facing a credit crunch.

IL&FS’s board in August approved raising funds via a 45 billion ($620.65 million) rights issue and a 30 billion debt-reduction plan through asset sales.

The insurer might also look at raising its equity stake in IL&FS, subject to regulatory permission, Sharma said, adding that the value of assets of the IL&FS was 600 billion.

Sharma and Rajnish Kumar, chairman of State Bank of India, were set to meet India’s economic affairs secretary on Friday to discuss the IL&FS crisis, a source familiar with the matter said.

IL&FS’s other major shareholders also include Japan’s Orix Corp and the Abu Dhabi Investment Authority, according to the company’s website up to the end of the financial year to March 2018.

Close