IL&FS To Sell Education, Wealth Management Arms
The Infrastructure Leasing & Financial Services Group initiated a process to sell its stake in its education and alternative investment management businesses.
The Uday Kotak-led board of the debt-laced lender is selling the group’s stake in IL&FS Education & Technology Services, along with other subsidiary businesses and IL&FS Investment Managers along with all its associated fund management platforms, the company said in a statement.
The education business provides technology services from kindergarten to high school students through its proprietary digital content, devices, platforms and solutions and offers job-linked vocational skill programmes. IIML, on the other hand, manages private equity funds, infra debt funds, among others, and has assets under management of around Rs 13,340 crore.
Earlier this week, the group had put its domestic road assets on sale and last month, it initiated a process to sell its stake in the renewable energy business.
The group, which is sitting on a debt of over Rs 94,200 crore, had also announced plans to divest its stake in IL&FS Securities Services and ISSL Settlement & Transaction Services, for which it claimed to have received interest from over dozen entities, including banks, private-equity funds and other financial services firms.
The board has appointed Arpwood Capital and JM Financial as financial and transaction advisors, along with Alvarez & Marsal as resolution consultants.
Meanwhile, IL&FS Financial Services in an exchange filing said it has defaulted in payment of a term loan of Rs 100.52 crore, due Thursday. It has already defaulted on payments worth over Rs 5,000 crore since late August.