IL&FS group to sell stake in road assets to raise funds

IL&FS group, which sits on a debt pile of about Rs 90,000 crore, said Monday it will sell equity stakes in its road assets to raise funds.

In order to ascertain market interest and to examine feasibility of maximisation of value in an orderly and transparent manner, the IL&FS board, acting on behalf of its relevant subsidiaries including ITNL Monday initiated the process of exploring divestment of IL&FS group's equity stakes in road assets, the group said in a statement.

It will sell assets in seven operating annuity based road projects in various parts of the country aggregating 1,774 lane kilometres; eigtht operating toll-based road projects aggregating about 6,572 lane km and four under construction road projects which would aggregate nearly 1,736 lane km upon completion.

Besides, three other assets and businesses which are EPC & O&M businesses of IL&FS Transportation Networks Limited (ITNL) and a sports complex in Thiruvananthapuram are also to be monetised.

Infrastructure Leasing & Financial Services (IL&FS) said the proposed sale of stake in these assets may be carried out as a basket or individually or as an undertaking comprising all offered assets and businesses.

"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 in the domestic roads vertical.

"The IL&FS board and the ITNL board are taking steps in this regard," it said.

IL&FS said the board of two companies are cognizant that these steps are required to advance the process for putting together the resolution plan for the IL&FS group.

The newly-appointed board of IL&FS on October 30 had submitted a report to the Ministry of Corporate Affairs on progress and the way froward followed by a second report on December 3 which in turn was submitted 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," said the statement.

The IL&FS board, on behalf of the entire IL&FS group, including ITNL has appointed Arpwood Capital and JM Financial as financial and transaction advisors along with Alvarez & Marsal as resolution consultants, it added.

The group has been resorting to various measures including selling-off the luxury cars owned by it as well as office furniture and white goods to pay-off its debt.