IFIN ex-CEO Bawa says LIC didn’t back Piramal’s IL&FS bid
Mumbai: Investigations into Infrastructure Leasing & Financial Services (IL&FS) have revealed more details about the role of its biggest stakeholder, Life Insurance Corporation (LIC), in a failed acquisition bid by the Piramal Group in 2015. Also uncovered are what appear to be attempts by the top IL&FS management to influence credit ratings. The shock IL&FS defaults in September last year had triggered a liquidity crisis.
The offer by the Piramal Group for IL&FS failed because LIC expected a higher price, according to statements made to the Serious Fraud Investigation Office (SFIO). An accused erstwhile top executive of IL&FS Financial Services (IFIN) said that while the offer from Piramal EnterprisesNSE 3.99 % Ltd (PEL) was found to be “very good”, LIC didn’t share the valuation report prepared by SBI Caps with them. Based on the evaluation report, LIC was asking for Rs 1,100 per share against the Rs 860 offered by PEL.
