IL&FS - Too Big to Fail? - Chart Of The Day 27 September 2018 - Equitymaster
X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

IL&FS - Too Big to Fail?
Sep 27, 2018


A look at the share holding pattern of IL&FS underlines the scale of the problem.

Two of India's biggest entities comprise of the top 5 shareholders in IL&FS. LIC has a 25.3% stake. HDFC Ltd owns 9%. Along with Central bank of India (7.7%) and State Bank of India (6.4%), these entities own almost half of IL&FS.

That explains the determination of LIC to stop the situation from worsening further.

The chairman of LIC has hinted at increasing LIC's exposure to IL&FS.

IL&FS' long-term and short-term debt were recently downgraded to 'D' i.e. 'default' or 'junk' after it failed to repay its obligations.

In such a scenario, finding a buyer for its debt instruments will be difficult.

A lot of these loans to IL&FS were given by banks who till recently were grappling with NPA issues.

Adding all these stakeholders signifies how much is at stake on the revival of IL&FS.

Data Source: IL&FS 2018 Annual report

This Chart Of The Day was published in The 5 Minute WrapUp - The Market Correction Might Be Just Starting Due to the IL&FS Domino

Equitymaster requests your view! Post a comment on "IL&FS - Too Big to Fail?". Click here!

  

Our Most Popular Charts

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS