Shareholders skip IL&FS rights issue, to wait for clarity on board's plans

IL&FS had required a line of credit by August 15 and wanted to close the rights issue by September 15 to avoid any default

Shareholders of Infrastructure Leasing & Financial Services (IL&FS) are likely to have passed the rights issue, said sources. The Rs 45-billion rights issue, which opened on October 5 and closed on Friday, did not see any of the major shareholders subscribing, said sources.  

The rights issue was part of the previous management’s fundraising plan to revive the debt-ridden company. But, with the government sacking the board and appointing a new one, shareholders may have decided to wait for more clarity before committing new investments into the company.

“The board of directors shall decide on the rights issue subscription after closure of the