IL&FS Engineering and Construction Company on Monday said it has defaulted on redemption of preference shares worth Rs 39.5 crore in favour of Vistra ITCL (India) Ltd.
The due date of redemption was September 30.
"Due to the present circumstances in relation to the company...the company is unable to redeem the preference shares on the due date," it said in a filing to stock exchanges.
Default on the redemption is with respect of non-convertible redeemable cumulative preference shares and optionally convertible preference shares.
The debt crisis at the infrastructure lender IL&FS, which created a turmoil in the Indian financial market and led to a situation of liquidity tightening in the system, came into light following a series of defaults by its group companies beginning September 2018.
The company's shares closed at Rs 3.87 apiece on the BSE, down 3.25 per cent as compared to the previous close.
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app