INFRASTRUCTURE LEASING & FINANCIAL SERVICE LIMITED

(IL&FS)
Introduction
IL&FS i.e. infrastructure leasing and financial limited is an Indian public company setup in the
year 1987 as an “RBI registered core investment company” by three financial institutions namely
the Central Bank of India, Housing development finance corporation (HDFC) & Unit Trust of
India (UTI), to provide finance and loans for major infrastructure projects. The Headquarter is in
Mumbai. Its shareholders include Life Insurance Corporation of India (LIC), ORIX and Abu
Dhabi Investment Authority. This company is in the category of Non Banking financial
institutions who takes loan from Banks. The company had secured AA PLUS rating, but within
1 week it had degraded this rating to Junk Status, it was all because of a 90,000 crore loan
default that it had made.
It has 256 group companies including subsidiaries, joint venture and associate entities.
Some of its subsidiaries are
Infrastructure services

 IL&FS Infrastructure Development Corporation Limited: advisory and project

development.
 IL&FS Environmental Infrastructure & Service Limited.
 IL&FS Education & Technology services Limited

Financial Services

 IL&FS Financial services Limited.

 IL&FS Investment Manager Limited.
 ORIX Auto Infrastructure services limited

Technology Services

 IL&FS Technologies Limited.

IL&FS Ownership

 LIC (25%)
  ORIX (23%)
 ADIA (Abu Dhabi Investment Authority) (12%)

IL&FS is a Shadow Bank. A shadow banking system is a group of financial intermediaries help
in the creation of credit across the global financial system whose members are not subject to
regulatory oversight. Basically shadow Bank does not accept deposits because of which they are
not much regulated or we can say control by RBI.
The shadow banking system consists of Lenders, Brokers and other intermediaries who does not
come under the traditional regulated banking.
IL&FS become the first Indian company to raise finance fund through masala bonds a rupee
denominated from over sea investor. This was one of the landmarks in the Indian Economy
history. They raise about 50mn dollar through this bond.
Key milestone

 1989-90 first full year broking on NSE

 1999-2000 ORIX and K.Raheja joint as a new shareholder
 2000-2001 commenced Derivative broking on NSE.
 2000-2001 Launched investment advisory products.
 2003-2004 acquired 4 branches of Tata TD water house.
 2004-05 commenced commodity Banking.

Key projects

 Delhi Noida toll bridge :- This bridge will connect delhi to Noida across the Yamuna
river. Moreover this will be India first Electronic toll collection bridge.
 Ranchi Patrau dam road :- To provide better connectivity between town of
Jharkhand.It covers 35 km because of which inter city connectivity improved.
 Chennai Nasri tunnel :- This is the longest tunnel in India consists of 9.28 km.This
tunnel cuts down 31 kms of the jammu- Srinagar distance.
 Baleshwar kharagpur expressway:- This is the four lane project from Baleshwar to
kharagpur consists of 119.30km. It has 4 major bridges and 48 minor bridges with two
toll plaza
 Gujarat international finance tec –city (GIFT):- Gujarat urban development company
limited and IL&FS have jointly establish Gujarat international finance tec –city (GIFT)
.this is the India first multi service sez. This business hub is operational with approx 12
leading Indian Banks.
 The sport Hub Trivandrum:- India first international cricket cum football stadium
built on 37 acres with a seating capacity of 50,000 person