The board of debt-trapped Infrastructure Leasing & Financial Services (IL&FS) on Thursday appointed Vineet Nayyar as vice chairman (VC) and managing director (MD) of the company, said Uday Kotak, managing director, Kotak Mahindra Bank.
Nayyar had served as the former executive VC of Tech Mahindra, founding chairman and MD of Gas Authority of India, MD of HCL Corporation Ltd and as the VC of HCL Technologies Ltd.
Speaking to reporters, Uday Kotak said new IL&FS board will take all necessary steps to preserve the value of group and meet regularly to draft roadmap for the future.
Kotak said board has constituted a stakeholders’ committee and GN Bajpai will head it, "We are a legally constituted board rather than a shareholder led board."
He said board members have heard the IL&FS management and is committed to make a fair assessment of facts.
Comparing IL&FS and Satyam to chalk and cheese, Nayyar said Mumbai-based infrastructure company is a far more complex problem and complexity at multiple levels.
According to newly-appointed MD, IL&FS is not a case of felony, but Satyam Computers is.
The new IL&FS board also elevated board member Nandkishore as audit committee chairman and GC Chaturvedi will be the chairperson of the remuneration committee.
The government seized the control of IL&FS on October 1 in a Satyam Computer style takeover and superseded its board and appointed a new one led by banker Uday Kotak.
Other members in the board include former Sebi chairman GN Bajpai, ICICI Bank chairman GC Chaturvedi, IAS officer Malini Shankar, Vineet Nayyar, who steered Satyam Computers out of the scam, and veteran auditor Nandkishore.
IL&FS and its subsidiaries, with a consolidated debt of over Rs 91,000 crore, have in the past one month made a slew of defaults on repayments of loans, commercial papers and NCDs. There were also concerns that default by a large NBFC like IL&FS would create liquidity crunch in the financial markets.
As per IL&FS' latest balance sheet, infrastructure and financial assets worth over Rs 1,15,000 crore are presently facing tremendous debt pressure and struggling to service around Rs 91,000 crore in debt which is the outcome of its mismanaged borrowings in the past.
LIC is the largest shareholder in IL&FS with 25.34 percent stake. Besides, Japan's Orix Corporation has 23.54 percent stake in the company. Other shareholders include Abu Dhabi Investment Authority (12.5 percent stake), IL&FS Employees Welfare Trust (12 percent), HDFC (9.02 percent) and SBI (6.42 percent).
(With inputs from PTI)