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The ₹4,500-crore rights issue of debt-laden IL&FS, approved by the previous board, received poor response, with institutional investors not investing a single rupee and certain retail investors investing a total of ₹5,47,500.
Institutional investors may have developed cold feet in subscribing to the rights issue, as their representatives did not find a place on the newly-constituted board of IL&FS.
“The issue was open from October 5, 2018, till October 19, 2018. IL&FS received, in aggregate, a subscription of ₹5,47,500 only in the rights issue from certain retail shareholders, and has not received any subscription from its institutional shareholders,” said the company in a report filed with the stock exchanges.
The new board, in its meeting dated October 27, 2018, has approved return of subscription money received from retail shareholders. The new board proposes to engage with the key shareholders of IL&FS in due course.
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