IL&FS invites Proposal for Selling Assets from Renewable Energy Business
Moneylife Digital Team 29 November 2018
Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has initiated the process to sell its renewable energy business and has invited expression of interest (EoI) proposals from prospective buyers.
IL&FS's assets from the renewable energy business put on the block include, operating wind power generating plants with aggregate capacity of 873.5MW, and its under-construction wind power generating plants with aggregate capacity of 104MW. Its asset management services for the wind power generating plant, business division that carries out project development and implementation of wind power plants will also be sold.
IL&FS is also selling its businesses relating to project development and implementation of solar power generating plants and projects under development of approximately 300MW capacity solar power plants for corporates, the group said in a release.
As per the statement, the proposed stake sale may be carried out as a basket or individually or any combination.
"In order to ascertain market interest and to examine feasibility of maximisation of value in an orderly and transparent manner, the Board, acting on behalf of its relevant subsidiaries, has today initiated the process of exploring the sale of controlling stake(s) held by IL&FS Group in renewable energy assets or businesses...," the company said in the statement.
The decision is based on the report prepared by the new board of IL&FS which was submitted to the ministry of corporate affairs and, in turn, to the national company law tribunal (NCLT).
"As stated in the said report, it is the objective of the board to achieve, by one or more plan(s), the resolution of the IL&FS group through certain measures, including asset divestment," the statement said.
IL&FS's board has appointed Arpwood Capital Pvt Ltd and JM Financial Ltd as financial & transaction advisors, along with Alvarez & Marsal as resolution consultants.
Earlier this week, the debt-ridden group had said that it has received over a dozen EoI towards acquiring its stake in IL&FS Securities Services Ltd (ISSL) and ISSL Settlement and Transaction Services Ltd (ISTSL).
IL&FS had started the asset monetisation process a fortnight ago, towards developing a resolution plan for the IL&FS Group. The last date for receipt of EoI was 23 November 2018.
On 24th November, corporate affairs secretary Injeti Srinivas said that following an 'overwhelming response' to buy units of the debt-ridden company, State-appointed will soon put on sale another 8 to 10 subsidiaries.
IL&FS group had a debt of more than Rs91,000 crore at the end of March 2018.
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