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Last Updated : Oct 03, 2018 09:34 AM IST | Source: Moneycontrol.com

IL&FS group stocks surge about 20% after govt takes control

The National Company Law Tribunal (NCLT) allowed the government to constitute a new board for the debt-strapped lender, asking it to devise a plan for the group and file a response by October 15.

 
 
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Shares of IL&FS group stocks including ILandFS Investment Managers, ILandFS Transportation Networks and ILandFS Engineering were trading higher by 10-20 percent after government took control of IL&FS board.

The government has taken control of Infrastructure Leasing & Finance (IL&FS) after getting an approval from the Insolvency & Bankruptcy Court in Mumbai.

The National Company Law Tribunal (NCLT) allowed the government to constitute a new board for the debt-strapped lender, asking it to devise a plan for the group and file a response by October 15.

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Also Read - IL&FS timeline: When and what happened so far

The new board will be headed by Kotak Mahindra Bank’s CEO and Managing Director Uday Kotak along with five other members - ICICI Bank Chairman Girish Chandra Chaturvedi, former head of the Securities and Exchange Board of India GN Bajpai, former IAS officer and Tech Mahindra chief Vineet Nayyar and former IAS officers Malini Shankar and Nanda Kishore.

The tribunal will next hear the matter on October 31.

Infrastructure Leasing & Financial Services (IL&FS) is the promoter and majority shareholder of IL&FS Transportation Networks (ITNL) and ITNL is the promoter of Noida Toll Bridge Company.

Nomura feels that government stepping in IL&FS issue is a welcome step and will watch who provides liquidity in the near term.

Real value of assets and the level of haircuts is required. Axis Bank, ICICI Bank, HDFC Bank are the top bets, it added.

At 09:20 hrs ILandFS Engineering was quoting at Rs 19.22, up 19.98 percent, ILandFS Investment Managers was quoting at Rs 9.43, up 9.91 percent and ILandFS Investment Managers was quoting at Rs 9.43, up 9.91 percent on the BSE.

Noida Toll Bridge Company was quoting at Rs 8.15, up Rs 0.28, or 3.56 percent.

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First Published on Oct 3, 2018 09:23 am
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