IL&FS Engineering and Construction Company Ltd defaults on Preference Shares Redemption

IL&FS Engineering and Construction Company Ltd had proposed a Rights Issue for an amount of Rs. 300 crores. Subsequently, the Company had filed Draft Letter of Offer to SEBI in March 2014 and has been awaiting observations from SEBI with regard to the foregoing Offer. One of the Objectives of the Rights Issue was to ensure redemption of Preference Shares falling due in September 2014 and March 2015.

In view of the foregoing, the amount of Preference Shares aggregating to Rs. 53 crores which was due for redemption on September 30, 2014 could not be redeemed.

The Company is exploring all avenues to meet its obligations including but not limited to extension of the redemption period of the said Preference Shares.

Shares of IL&FS ENGINEERING AND CONSTRUCTION COMPANY LTD. was last trading in BSE at Rs.55.75 as compared to the previous close of Rs. 56.7. The total number of shares traded during the day was 6619 in over 34 trades.

The stock hit an intraday high of Rs. 56.5 and intraday low of 55.5. The net turnover during the day was Rs. 369781.

Source : Equity Bulls

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