hare brokers react to falling stock prices on screens of computers and television
Shares of IL&FS
Group listed companies were under pressure with IL&FS
Engineering and Construction Company (IECCL) hitting a record low, while IL&FS
Investment Managers touching a 52-week low on the BSE on Wednesday.
IECCL hit a record low of Rs 15.70, finally settled at Rs 16.20, a 2.4% lower against its Tuesday’s close. IL&FS
Investment Managers ended 0.17% lower at Rs 11.65, after touching a 52-week low of Rs 11.48 in intra-day trade today. IL&FS
Transportation Networks was ended 0.5% higher at Rs 30.40 after falling 3% to Rs 29.40 in intra-day deal.
Thus far in the calendar year 2018, all these three stocks have fallen in the range of 63% to 70% on the BSE. On comparison, the S&P BSE Sensex rallied 11.6% during the same period.
Infrastructure Leasing & Financial Services (IL&FS) has reportedly defaulted on a multi-billion-rupee short-term loan from Small Industries Development Bank of India (SIDBI), according to a report by moneylife.
The report also says that the bank has asked one of its senior officials in the risk management department to resign over the loan default.
IECCL on Tuesday, September 4, 2018 said that the rating agency CARE Ratings has revised the credit rating of the company for long/short term bank facilities aggregating to Rs 30.9 billion.
CARE Ratings said that the revision in the ratings assigned to IECCL factors in the moderation in the credit profile of the promoter group, Infrastructure Leasing and Financial Services and IL&FS
Financial Services and its high reliance on the promoter group to meet its operating and financial obligations as the operating performance continue to remain subdued.
CARE has revised the outlook to negative as IECCL's constrained liquidity position may impact IECCL's ability to execute its order book in the medium term which may lead to further deterioration in the operating performance.
The outlook will be revised to stable if IECCL has been able to improve its operating performance that enhances its liquidity position, which could moderate its dependence on the promoter group, it added.