IL&FS Seeks Shareholder Approval to Sell Equity and Assets

  • Group’s debt defaults since August shocked India credit market
  • Woes have raised questions about Modi’s infrastructure plans
Pedestrians walk past the Bombay Stock Exchange (BSE) building in Mumbai, India.Photographer: Dhiraj Singh/Bloomberg
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India’s troubled shadow bank Infrastructure Leasing & Financial Services Ltd., whose recent debt defaults sparked concern about contagion in the nation’s financial markets, has sought shareholder’s approval for a plan to revive the firm at the company’s annual general meeting on Saturday.

The management aims to bring the group back to normalcy by selling shares through a rights issue, paring assets to raise funds and by getting new credit lines to repay debt due soon, Hari Sankaran, managing director of IL&FS said in a statement after the meeting. Sankaran didn’t provide any further details of the plan.