IL&FS Transportation hits upper circuit as parent firm initiates divestment

Shares of IL&FS Transportation Networks (ITNL) hit upper circuit limit of 5 per cent to Rs 11.55 on Tuesday after the Infrastructure Leasing and Financial Services (IL&FS) board said it has initiated the process to explore divestment of the group’s interest in road assets and business.

“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 IL&FS Transportation Networks (ITNL), has today initiated the process of exploring the divestment of the IL&FS Group’s equity stake/interest in road businesses or an undertaking comprising all the assets,” the statement said.

Il&FS has listed seven operating annuity-based road projects, eight operating toll-based road projects, four under construction road projects, three other assets and businesses, which are EPC & O&M businesses of ITNL and a Sports Complex in Thiruvananthapuram as assets included in its domestic roads vertical, said a Business Standard report. READ MORE

Arpwood Capital and JM Financial have been appointed as the financial and transaction advisors, along with Alvarez & Marsal as resolution consultants.

At 10:13 am, shares of the company were locked in at Rs 11.55 apiece on BSE. A total of 1.17 million shares traded on NSE and BSE so far.