No bailout for IL&FS?

A government bailout of a private company would be a huge risk in the run-up to the general election in 2019

It’s hard to miss the message in the failed rights issue of Rs 45 billion of Infrastructure Leasing and Financial Services (IL&FS) that closed last week. The rights issue and liquidity support of around Rs 35 billion from Life Insurance Corporation (LIC) and State Bank of India (SBI) were key to any revival plan for the beleaguered company. With the public shareholders not subscribing to the rights issue, the prospects of a bailout appear to be fading.
 

The decision to not subscribe makes sense. What shareholder would want more exposure to a company whose very solvency is in doubt? Moreover,