Mumbai: Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has initiated the process to sell its renewable energy business under which it will invite Expression of Interest (EoI) proposals from prospective buyers.
"In order to ascertain market interest and to examine feasibility of maximisation of value in an orderly and transparent manner, the Board, acting on behalf of its relevant subsidiaries, has today initiated the process of exploring the sale of controlling stake(s) held by IL&FS Group in renewable energy assets or businesses...," the company said in a statement on Wednesday.
As per the statement, the proposed stake sale may be carried out as a basket or individually or any combination.
The decision is based on the report prepared by the new Board of IL&FS which was submitted to the Ministry of Corporate Affairs and in turn to the National Company Law Tribunal (NCLT).
"As stated in the said report, it is the objective of the Board to achieve, by one or more plan(s), the resolution of the IL&FS group through certain measures, including asset divestment," the statement said.
The debt-ridden group on Monday revealed that it has received over a dozen EoI towards acquiring its stake in IL&FS Securities Services Ltd (ISSL) and ISSL Settlement and Transaction Services Ltd (ISTSL).
The firm had started the asset monetisation process a fortnight ago, towards developing a resolution plan for the IL&FS Group. The last date for receipt of EoI was November 23.
On November 24, Corporate Affairs Secretary Injeti Srinivas said that following an "overwhelming response" to buy units of the debt-ridden company, its state-appointed board will soon put on sale another 8 to 10 subsidiaries.
IL&FS Group had a debt of more than Rs 91,000 crore at the end of March 2018.