IL&FS plunge continues; group shares hit lower circuit, tank 10% after parent firm defaults

By: | Published: October 9, 2018 11:23 AM

The shares of IL&FS Transportation Networks (ILFT) and IL&FS Engineering and Construction Company (ILFE) locked in lower circuit after plunging as much as 9.9 percent in the early trade after the parent company (Infrastructure Leasing & Financial Services) defaulted on payments.

sensex, private equity Sensex and Nifty traded on a flat note during the early trade on Tuesday after opening on a higher note.

IL&FS default: The shares of IL&FS Transportation Networks (ILFT) and IL&FS Engineering and Construction Company (ILFE) locked in lower circuit after plunging as much as 9.9 percent in the early trade after the parent company (Infrastructure Leasing & Financial Services) defaulted on payments. While the shares of IL&FS Transportation Networks were trading at Rs 24.55 down 9.91 percent, IL&FS Engineering and Construction Company stock was trading at Rs 20.43, down 10 percent on BSE at the time of reporting.

Also read: Share market LIVE updates: Sensex, Nifty turn flat; Tata Motors cracks 5%, Yes Bank shares gain

The firm on Monday announced that it was unable to service obligations for inter-corporate deposit due by October 8. To date,  ILFT shares are down 67.3 percent as of last close and ILFE lost 58.6 percent during the given period.

The government last month took control of the infrastructure lender after the company defaulted on a few of its debt payments in last few weeks, raising concerns in the market about risk in the NBFC sector.

Meanwhile, benchmark indices Sensex and Nifty traded on a flat note during the early trade on Tuesday after opening on a higher note. The Sensex opened over 200 points higher on Tuesday and surged 237 points to touch an intraday high of 34,711.68 points. The Nifty opened higher at 10,390.30 points.

The rupee made a cautious recovery of 18 paise to 73.88 versus the US dollar Tuesday on fresh selling of the American currency by banks and exporters.

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