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As on: Feb 24, 2019 02:33 AM
Life Insurance Corporation open to taking part In IL&FS Rights Issue
28-Sep-18   19:48 Hrs IST

Life Insurance Corporation is open to participating in a rights issue by debt-ridden Infrastructure Leasing & Financial Services (IL&FS), the insurer's chairman VK Sharma said in a release on Friday.

IL&FS is a major Indian 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 Rs. 4,500 crore ($620.65 million) rights issue and a Rs. 3,000 crore debt-reduction plan through asset sales.

LIC, the country's largest state-run insurer, might also look at raising its equity stake in IL&FS, subject to regulatory permission, Mr Sharma said, adding that the value of assets of the IL&FS was Rs. 60,000 crore.

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