IL&FS Transportation hits UC
Shares of IL&FS Transportation were momentarily locked in 20% upper circuit in the last 30 minutes of trade this Friday, building up gradually during the day. While the share price ruled in the green for this entire week, heightened activity was witnessed post 2pm today. Volumes have also been very heavy on both BSE and NSE, with combined turnover for the day, so far, of exceeding 1.2 crore shares, on current equity of Rs. 32.9 crore. Now however, share has come out of circuit, and is ruling closer to 93 levels.
Company has scheduled a board meeting on 13th September to evaluation plans to raise Rs. 5,000 crore through NCDs (non convertible debentures). While company has a very high debt equity ratio, (4:1 as of 31-3-16, which is one of the highest in the peer set), it is able to service this debt, as interest payments have been made on time for the months of August and September.
Despite current debt exceeding Rs. 27,500 crore, on equity of Rs. 6,700 crore, market is giving thumps-up to the company’s ability to service this huge debt.