NEW DELHI, July 28 -- Debt-laden Infrastructure Leasing & Financial Services Ltd. (IL&FS) on Thursday said it has completed two sale transactions, that of Urjankur Shree Tatyasaheb Kore Warana Power Company Ltd. (Urjankur Warana) and IL&FS Energy Development Company Ltd. (IEDCL) Energy Advisory Business division, for Rs.77.5 crore.
Both the entities were part of its energy business portfolio.
IL&FS sold its 33.33% stake in Urjankur Warana to Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd (HSF or Host Sugar Factory). Urjankur Warana is an SPV jointly promoted by IEDCL, that holds 33.33% stake, and Urjankur Nidhi Trust, which holds the rest of the stake.
IEDCL also holds 27.75% stake in Urjankur Nidhi Trust along with Maharashtra Energy Development Agency that holds 50%, and Shree Datta Shetkari Sakhar Karkhana Ltd. holding the rest.
Besides selling its stake sale in Urjankur Warana, IL&FS also sold its 27.75% stake in Urjankur Nidhi Trust to HSF for Rs.62.5 crore.
IL&FS has now exited both these entities completely.
Urjankur Warana owns a 44 MW bagasse-based cogeneration power plant in Kolhapur, Maharashtra, which is set up on land leased from HSF.
In the second transaction, IL&FS concluded the sale of Energy Advisory business, a division of IEDCL, to PTC India Ltd. using the Swiss Challenge method.
PTC emerged as the highest bidder in the process and the sale was completed on 26 July for Rs.15 crore. This sale was approved by the National Company Law Tribunal.
Proceeds from both these sale transactions would be used by the new IL&FS board to reduce debt as per the resolution framework approved by NCLAT.
The new IL&FS Board, in a March update, had said that it has resolved nearly 55% of the group's outstanding debt over the last three-and-a-half years. Among others, the company sold its iconic headquarters at Bandra Kurla Complex for Rs.1,080 crore to reduce debt.
Nearly Rs.55,000 crore of IL&FS's total debt of Rs.99,000 crore has been resolved, and this is 90% of the estimated debt resolution of Rs.61,000 crore. Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at email@example.com