IL&FS Claims Over Dozen Responses For Stake Sale In Two Subsidiaries
Debt-laden Infrastructure Leasing & Financial Services on Monday said that it received over a dozen responses for its stake sale in IL&FS Securities Services, and ISSL Settlement & Transaction Services.
The company had initiated the process of divesting its stake in both the subsidiaries on Nov. 12. The group has 348 subsidiaries, nearly half of which are overseas.
"More than a dozen expressions of interest towards acquiring IL&FS' stake in ISSL and ISTSL have been received, which the board is scrutinising for eligibility," the company said in a statement. The last date for submitting responses was Nov. 23.
It said a mix of banks, private equity players and other financial services firms showed interest in buying IL&FS's stake in the two arms. "The group will shortly be launching the asset monetisation process for sale of many other assets as part of its ongoing resolution process," the release said.
The Uday Kotak-led board of IL&FS, appointed by the government, had submitted a report on the progress and the way forward to the ministry of corporate affairs, which in turn was submitted to the National Company Law Tribunal.
In the resolution plan submitted to NCLT on Oct. 31, the board said it expects to complete the resolution process in stages over the next two-three quarters. The plan submitted to the bankruptcy court also hinted at non-transparent and illegal transactions by the previous management in the selling a group entity in June 2017.
The board had also pegged the total debt of the group by over Rs 3,000 crore at Rs 94,215.6 crore as of Oct. 8.
In the resolution plan, the management had said the new board was facing significant challenges arising from lack of reliable information and gaps in the data in working towards a resolution plan for the group.