The government-appointed Board of the beleaguered Infrastructure Leasing & Financial Services (IL&FS) has decided to put on sale its group companies across financial services, education, energy, transportation, infrastructure and power sectors by January 31, sources said.
The companies across eight groups and 20 verticals under which various assets are housed are being sold off, sources told DNA Money.
The Board has already set the ball rolling by inviting the expression of interest for the stake sale of two of its subsidiaries - IL&FS Securities Services and ISSL Settlement & Transaction Services.
"As per the revival plan prepared by the Board, it has been decided to dispose off the businesses in tranches as per the verticals. All the verticals and horizontals of the IL&FS group will be put on sale," a source said.
This is part of the revival plan prepared by the Board, which has been put up before the National Company Law Tribunal (NCLT).
The newly-appointed Board examined three options - the possibility of selling some of its assets, splitting the business into different verticals and divesting them and outright sale to pull the company out of the liquidity crisis.
Soon after taking over the company, the Board had appointed directors to eight key group companies of IL&FS including IL&FS Financial Services (IFIN), IL&FS Transportation Networks (ITNL), IL&FS Environmental Infrastructure and Services (IEISL), IL&FS Energy Development (IEDCL), IL&FS Engineering and Construction (IECCL), IL&FS Education and Technology Services (IETS) and Tamil Nadu Water Investment Company Board.
IL&FS has a debt of Rs 91,000 crore, of which the company owes Rs 57,000 crore to banks alone.
After a series of defaults by the financial services company, the government, in a court-approved action, dismissed the lender's Board on October 1 and appointed a new Board led by prominent banker Uday Kotak.
Debt defaults at IL&FS led to liquidity crisis situation in the financial markets. The government had moved court under sections 241 and 242 of the Companies Act, 2013, to prevent it from further mismanagement in order to protect public interest and a step towards restoring confidence of financial markets.
LIC owns 25.3% stake in IL&FS, followed by Japan's Orix Corporation (23.5%), Abu Dhabi Investment Authority (12.56%), HDFC (9%), Central Bank of India (7.67%) and State Bank of India (6.4%).
PIECE BY PIECE
Rs 91,000 crore – IL&FS has a debt
Rs 57,000 cr – It owes to banks
25.3% – Stake owned by LIC in IL&FS
- The newly-appointed Board examined three options - the possibility of selling some of its assets, splitting the business into different verticals and divesting them and outright sale to pull the company out of the liquidity crisis
- After a series of defaults by the financial services company, the government, in a court-approved action, dismissed the lender's Board on October 1 and appointed a new Board led by prominent banker Uday Kotak
