Rs 45 bn rights not enough, IL&FS needs Rs 300 bn in fresh equity: Report

The company will also have to take an impairment of at least Rs 150 billion before recovering a single rupee from its subsidiaries, says distressed-debt specialist firm REDD Intelligence

REDD Intelligence, a Singapore-based analytics specialist on distressed debt, says beleaguered infrastructure financier Infrastructure Leasing & Financial Services (IL&FS) will require equity infusion up to Rs 300 billion to get back on the rails.

It will also have to take an impairment of at least Rs 150 bn before recovering a single rupee from its subsidiaries, says REDD.

“The required equity infusion could be in the range of Rs 225-300 bn, much higher than the proposed Rs 45 bn rights issue,” it said in a report dated September 27. “We estimate the equity required to right-size the balance sheet is