SC’s DND Flyway order gives blow to IL&FS shareholders – Newz9

JAISALMER: DND Flyway order by the Supreme Court has come as a blow to shareholders led by IL&FS, who have been hoping to garner as a lot as Rs 2000 crore from the sale of the corporate, banking on its toll income and growth rights sought by Noida Toll Bridge CompanyWhile lenders too stand to be hit as their publicity is now mentioned to be within the vary of Rs 50-60 crore now.
While there weren’t too many large gamers within the fray, a number of small firms had evinced curiosity in taking on the corporate, which had 20 years in the past arrange a marquee undertaking, bettering connectivity between Delhi and Noida, then a sleepy suburb. Based on the curiosity, beleaguered IL&FS had budgeted for something between Rs 200 crore and Rs 500 crore from the sale to assist it enhance its receipts and cut back the burden on banks, which have been adversely hit by its strained funds.
While Noida Toll Bridge Company avoided commenting on the judgment because the order had not been uploaded, it expressed concern over the choice. “NTBCL is a NSE/BSE-listed entity and has over 55,000 public shareholders who own approximately 71% of the company, in addition to several financial institutions that have significant exposure to NTBCL either directly or through other IL&FS entities. The judgment is likely to serve as a guidance to developers for all ongoing and future Infrastructure projects under PPP model as they may need to reassess project risks, factoring in the implications of this judgment and plan accordingly,” it mentioned.