Officials of IL&FS claim that the stalling of the Piramal deal by the LIC in 2015 is the reason behind the current crisis, reported The Times of India.
The decision to stop the deal ultimately led to the cash crunch, said key officials from the company, as mentioned in the report.
According to the report, the officials revealed that while they were keen on bringing in Piramal group and making group chairman Ajay Piramal as shareholder, it was LIC that disagreed with the price offered and stalled the move.
While the Piramal Group was willing to buy stakes at Rs 750 per share, LIC had stuck to a valuation of Rs 1,150. “Now, three years later, the corporation is not bringing in funds at a price of even Rs 150, although the shares have been valued by an independent valuer at Rs 350,” a source was quoted as saying in the report.
The revelation comes at a time when the company board has decided not to oppose government's control over the firm.
First Published: IST