IL&FS Engineering up 90% in 1 week after government takes control of group
Shares of IL&FS Engineering and Construction Company has locked in upper circuit of 10% at Rs 25.32 on Friday, surging 90% in past one week after the government on Monday took control of infrastructure financier Infrastructure Leasing & Financial Services (IL&FS).
In the past one week, IL&FS Engineering and Construction Company has jumped 90% from Rs 13.35 on September 28, 2018. The stock rallied 119% from its record low of Rs 12.80 touched on the same day in intra-day trade.
The trading volumes on the counter more than doubled with a combined 1.43 million equity shares changed hands till 11:19 am. There were pending buy orders for 200,342 shares on the BSE and NSE.
Meanwhile, shares of IL&FS Investment Managers were up 4% at Rs 10.30, gaining 32% in past one week from Rs 7.80. IL&FS Transportation Networks (ITNL) down 10% at Rs 30.30 today, too up 34% from Rs 22.55 during the week. On comparison, the S&P BSE Sensex was down 3.7% thus far in the week.
Despite a sharp run-up, all these three stocks have underperformed the market by falling in the range of 27% to 52% in past six months, against 3.8% rise in the benchmark index.
According to Business Standard report, the government-appointed board at debt-ridden IL&FS hit the ground running and said it would take steps to preserve the value of the group.
The board, during its first meeting after being constituted on directions from the National Company Law Tribunal (NCLT), elected Kotak Mahindra Bank Managing Director (MD) and Chief Executive Officer (CEO) Uday Kotak non-executive chairman.
Former Tech Mahindra vice-chairman Vineet Nayyar was appointed vice-chairman and MD of IL&FS, subject to the approval of the NCLT.
The new board will have to provide the NCLT a roadmap for turning around the company by October 31, which, Kotak said, is challenging, given that the company’s issues represent a “moving target”, added report. CLICK HERE TO READ FULL REPORT