IL&FS group stocks climb up to 10% on divestment initiative to raise funds

Shares of IL&FS group companies surged up to 10 per cent Tuesday as it announced its plan to sell equity stakes in its road assets to raise funds.

IL&FS Investment Managers was trading 9.86 per cent higher at Rs 7.02 at 1230 hours on BSE, IL&FS Transportation Networks Ltd (ITNL) rose 5 per cent to Rs 11.55 and IL&FS Engineering and Construction advanced as much as 4.98 per cent to Rs 14.13.

However, the benchmark BSE Sensex was down 139 points at 36,137 during the same time.

On Monday, Infrastructure Leasing & Financial Services (IL&FS) group, which sits on a debt pile of about Rs 900 billion, said it will sell equity stakes in its road assets to raise funds.

The IL&FS board, acting on behalf of its relevant subsidiaries including ITNL, Monday initiated the process of exploring divestment of IL&FS group's equity stakes in road assets, the group said in a statement.

This was done in order to ascertain market interest and to examine feasibility of maximisation of value in an orderly and transparent manner, it said.

It will sell assets in seven operating annuity-based road projects in the country aggregating 1,774 lane km, eight operating toll-based projects aggregating about 6,572 lane km and four under construction road projects which would aggregate nearly 1,736 lane km upon completion.

Besides, three other assets and businesses which are EPC & O&M businesses of ITNL and a sports complex in Thiruvananthapuram, are also to be monetised.