Shares of IL&FS Group companies nosedived on bourses in Wednesday's trade after the Enforcement Directorate (ED) carrying out searches in connection with the IL&FS payment default.
The ED has registered a case against the former IL&FS top brass, including its former chairman Ravi Parthasarathy, under the Prevention of Money Laundering Act (PMLA) following a report submission by the Serious Fraud Investigation Office (SFIO). The probe agency is searching at various offices of IL&FS in Delhi-NCR and Mumbai, and also at the premises of the former officials.
Reacting to the news, shares of IL&FS Transportation Networks, the transportation arm of Infrastructure Leasing & Financial Services (IL&FS), declined as much as 4.94 per cent to hit lower circuit of Rs 6.74 on the Bombay Stock Exchange. The stocks were trading at Rs 6.75 apiece, down 4.93 per cent, on the National Stock Exchange.
In a similar trend, stocks of IL&FS Engineering & Construction Company plunged as much as 4.93 per cent and locked in lower circuit at Rs 10.81 apiece on the Bombay Stock Exchange after opening at Rs 11.90, against previous closing price of Rs 11.37.
Bucking the trend, shares of IL&FS Investment Managers were trading at Rs 4.90 apiece, up 1.66 per cent as compared to previous close level of 4.82 on the Bombay Stock Exchange.
As of March 2018, IL&FS owed over Rs 91,000 crore to banks and other creditors and has been downgraded to junk status by rating agencies after it defaulted on debt repayments due to a liquidity crisis.
The government has constituted a seven-member board, headed by veteran banker Uday Kotak, to submit a comprehensive resolution plan to revive the debt-ridden company.
Edited by Chitranjan Kumar