Crisis-hit IL&FS may get a lifeline with LIC, SBI likely to increase stakes

The two institutions could increase their stakes through rights issue

Infrastructure Leasing & Financial Services (IL&FS) could get a lifeline, with public sector behemoths Life Insurance Corporation (LIC) and State Bank of India (SBI) likely to increase their stakes in the beleaguered infrastructure lending company through a rights offering as a means of infusing fresh capital.

LIC is IL&FS’ largest shareholder with a 25.34 per cent stake, while SBI, which owns 6.42 per cent, is the seventh-largest stakeholder in the company. 

The prospect of the two public sector financial institutions raising their stake was discussed in a meeting chaired by Finance Minister Arun Jaitley on Tuesday. Economic Affairs Secretary Subhash