IL&FS CRISIS

Submitted By- Amit Admune (2019PGP003)

Nishul Wadhwa (2019PGP
Rahul Baid (2019PGP
S Rakshana (2019PGP
WHAT IS IL&FS?

• Infrastructure Leasing and Financial Services (IL&FS), a financer of roads,

bridges and powerplants
• It is a brainchild of the late M.J Pherwani and was founded in 1987 with
equity from Central Bank of India, Unit Trust of India, and Housing
Development Finance Co to fund infrastructure projects
• It operates through more than 250 subsidiaries including IL&FS Investments,
IL&FS Financial Services, IL&FS Transportation
• As per Uday Kotak, there are 348 subsidiaries operating under IL&FS Ltd.
WHAT IS IL&FS?
• The company have 23 direct subsidiaries, 141 indirect subsidiaries, 6 Joint
Ventures, and 4 Associate companies, each of them is further subdivided
into several legal entities
• Major Stakeholders
• LIC (25%)
• Mitsubishi through ORIX Corporation Japan (25%)
• Abu Dhabi Investment Authority (13%)
MAJOR PROJECTS
• Gujrat International Finance Tech City
• Ladakh to Kashmir Tunnel (Z-Morh Tunnel)
• Oil Terminal in India
• India’s longest and safest tunnel
CURRENT CONDITIONS

Secured
7 Times Defaulted
Debt of 73,359 CR
defaulted in Short term
94216 CR and
Payment Of loan of
INR Unsecured
Interests 1,000 CR
20,857 CR
CURRENT CONDITIONS

To fulfil Long
Proposed
Capital term debt, Debt Equity
Rights
Infusion of started Ratio 16
Issued 4500
3000 CR INR taking Short times
CR INR
term debt
CURRENT CONDITIONS

700 CR recovery
Tamil Nadu Auditors in
from NHAI on
Power Company default- BSR
the basis of
filed litigations Associates and
executed
of 382 CR Deloitte
projects
TIMELINE

July 21, August August

2018 28, 2018 End

Group Founder and Group Financial arm

Chairman Ravi The group defaults on
IL&FS Financial services
1,000 CR INR and its
Parthsarthy steps defaults on repaying to
subsidiaries default on
down, citing health commercial paper
500 CR owned to SIDBI
problems investors
TIMELINE

August September September

End 12 13

ICRA,CARE, IL&FS says 16000 CR

BrickWork Several short term
stuck in claims and
downgrades its rating default take place
to “default”, ”junk” amounting to 440 CR
it had been planning
category on raising 45000 CR
TIMELINE

September September
October 1
24 29

NCLT judgement allows

IL&FS defaults again At AGM, IL&FS government to assume
and lose access to decides to raise 4500 control and institute a
fund raising through CR through right new board under the
commercial papers issue chairmanship of Uday
Kotak
TIMELINE

April 24, May 08, July 15,

2019 2019 2019

Asked other banks Removed the

Auditors have
to disclose the same decision of
resigned
NPA of IL&FS 24 April
REASONS OF DOWNFALL

Improper utilisation of
Cost escalation due to
company’s resources
projects delay
by top management
IMPACTS

Fall of Nifty and Sensex

Fear of Non Liquidity

60% fall in share price of DHFL

L&T and Bajaj Finserv share prices fall down by 16%

Trust on Credit Rating agency are under scanner

THANK YOU
Submitted By-
Amit Admune (2019PGP003)
Nishul Wadhwa (2019PGP036)
Rahul Baid (2019PGP041)
S Rakshana (2019PGP044)
Shamanth MK (2019PGP054)
Shishir Gupta (2019PGP058)