IL&FS Group To Receive First Set Of Bids For Assets On March 18 
An employee counts rupee currency notes inside a private money exchange office in New Delhi. Image used for representational purposes only.

IL&FS Group To Receive First Set Of Bids For Assets On March 18 

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Cash-strapped IL&FS Group will receive its first set of bids under the asset monetisation process on Monday as part of resolution process, according to sources.

The company’s board will later consider bids for the Rs 8,000-crore renewable energy business that was put on the block in November 2018, the sources said. This will be the first set of bids that will be opened under the resolution process by the government-appointed and Uday Kotak-led new board, they said.

The group, which is sitting on the debt of about Rs 94,000 crore, had decided to sell assets in various verticals, including roads, education, renewable energy, and broking in November last year.

The renewable assets of the group include operating wind power plants with an aggregate capacity of 873.5 megawatts, and under-construction plants with 104 MW capacity. It also includes the solar power business, under which it has around 300 MW of under-construction projects.

Japan's Orix is the joint venture partner in the wind power business and the completion of sale of this business is expected to reduce IL&FS debt of about Rs 5,000 crore. When contacted, IL&FS spokesperson declined to comment. According to sources, nearly two dozen firms had participated in the expression of interest sought by the company that ended on Dec. 10, 2018.

Several companies, sources said, have completed their due diligence of the underlying assets. However, the completion of entire process and shortlisting of the final bidder will take a few weeks as multiple processes are involved.

LIC is the single largest shareholder with over 25 percent stake in IL&FS and Orix Corp owns a little over 23 percent.

IL&FS Employees Welfare Trust holds 12 percent in the company. The Abu Dhabi Investment Authority, HDFC and Central Bank of India hold 12.56 percent, 9.02 percent and 7.67 percent, respectively, in the cash-strapped company. The country's largest lender, the State Bank of India holds a 7 percent stake in the company.

Also read: IL&FS Board Charges Former Directors Of Money Laundering, Criminal Intent

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