Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has initiated process to sell road assets of its subsidiary IL&FS Transportation Networks Ltd (ITNL) and invited expression of interest (EoI) proposals from buyers.
According to the company, the decision is based on the report prepared by the new Board of IL&FS, which was submitted to the ministry of corporate affairs (MCA) and in turn to the national company law tribunal (NCLT).
"As stated in the said reports, it is the objective of the IL&FS Board to achieve, by one or more plan(s), the resolution of the IL&FS group including ITNL through certain measures, including asset divestments," the company said in a statement.
"Accordingly, the IL&FS Board working with the ITNL Board have decided to publicly solicit Expressions of Interest to assess the interest for a sale of its stake(s) in the domestic roads vertical. The IL&FS Board and the ITNL Board are taking steps in this regard."
The assets put on block by IL&FS include "seven operating annuity based road projects in various parts of India aggregating approximately 1,774 lane kms; eight operating toll-based road projects in various parts of India aggregating approximately 6,572 lane kms..."
"... four under-construction road projects in various parts of India which would aggregate approximately 1,736 lane kms upon completion; and three other assets and businesses, which are engineering procurement construction (EPC) and operation and maintenance (O&M) businesses of IL&FS Transportation and a Sports Complex in Thiruvananthapuram."
As per the statement, the proposed stake sale may be carried out as a basket or individually or any combination. (for more details click here
Last month, debt-laden IL&FS had revealed that it has initiated the process to sell its renewable energy business.
IL&FS 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).