IL&FS’ new board meets. (Source: BloombergQuint)

IL&FS’ New Board To Meet For Second Time On Friday

The newly constituted board of Infrastructure Leasing and Financial Services, headed by veteran banker Uday Kotak, will meet for the second time on Friday to decide the further course of action plan for the cash-crunched company, a source said.

In the maiden meeting held on Oct. 4, the six-member board undertook an initial assessment of the ground reality of the company and discussed the way forward.

Sources said that at tomorrow’s meeting, the board will examine various issues, including a fundraising plan, for the company.

The firm needs an immediate capital infusion of Rs 3,000 crore and is also planning a Rs 4,500-crore rights issue.

Speaking to reporters after the first board meeting, last week, Kotak had hinted that the crisis at the company was much more complex than earlier thought as the number of its subsidiaries and associates have more than doubled to 348.

Also read: IL&FS Needs Rs 100 Crore Every Month To Stay Afloat, Says Official

"We undertook an initial assessment of the ground reality and the way forward. We'll meet frequently to implement the directions of National Company Law Tribunal and to prepare a roadmap and turnaround," Kotak had said.

As per the NCLT order, the board is required to give a roadmap for the company by Oct. 31. Kotak had said the resolution will take some time and the board's focus is to preserve the fair value of the assets and the enterprise to the maximum extent.

On Oct. 1, the government superseded the board of IL&FS and appointed a six-member board with Kotak as the executive chairman. The other members of the board include the former SEBI chairman GN Bajpai, ICICI Bank’s non-executive chairman GC Chaturvedi, IAS officer and the director general of shipping Malini Shankar and Vineet Nayyar, and veteran auditor Nandkishore.

Also read: Finance Ministry’s Reading Of How Big The IL&FS Crisis Is