Four major cos in Gujarat have exposure to IL&FS stressed bonds: Report
The companies reportedly have substantial interests in the bonds through their employee provident fund trusts.
April 10, 2019 / 03:52 PM IST
Four major Gujarat-based companies have exposure to IL&FS' stressed bonds, according to an IANS report.
The companies have substantial interests in the bonds through their employee provident fund trusts, the report said.
IL&FS, a non-banking financial company (NBFC), defaulted on crucial payments in September 2018, triggering fears of a liquidity crisis in the NBFC space.
Moneycontrol could not independently verify the news.
The Staff Provident Fund Trust of Amul, or Gujarat Cooperative Milk Marketing Federation (GCMMF), has invested in the bonds.
The other three companies with exposure to the bonds listed on the BSE are Gujarat State Fertiliser Chemicals (GSFC), Gujarat Narmada Valley Fertilisers and Chemicals (GNFC), and Gujarat Industries Power Co.
The IANS report did not indicate the deals of the investments made by these companies, or how many employees were impacted.
GSFC and GNFC have exposure to the bonds through their EPFs while Gujarat Industries Power has made the investment through its PF, the report said.
IL&FS Financial Services, the group’s main lending arm, has gross non-performing assets (NPAs) of 90 percent of its total loans.
The National Company Law Appellate Tribunal (NCLAT) has said that loans given to IL&FS or its subsidiaries cannot be classified as bad loans without prior approval.