Mumbai: Debt-laden Infrastructure Leasing and Financial Services Ltd (IL&FS) on Wednesday said it will soon invite expressions of interest for its renewable energy business. The stake sale may be executed as a basket, or individually, or in any combination thereof, the company said in a statement.

On wind power, IL&FS owns operating plants aggregating 873.5 megawatts (MW) and under-construction plants aggregating 104MW. It also has asset management services for wind energy and a business division conducting project development and implementation for the sector. It is also looking to sell solar power projects under development totalling 300MW capacity, the statement said, adding the IL&FS board is taking steps for public solicitation soon.

The IL&FS board had recently appointed Arpwood Capital Pvt. Ltd and JM Financial Ltd as financial and transaction advisers, and Alvarez and Marsal as resolution consultants.

“The board is cognizant that these steps are required to advance the process for putting together resolution plan(s) for the IL&FS group, based on market interest and price discovery for various assets. Any binding transaction for the sale of assets, as well as the resulting resolution plan, will be subject to requisite approvals (including the NCLT) before the transactions are implemented," it added.

Serial debt defaults at IL&FS and its subsidiaries that triggered a liquidity squeeze in the non-banking financial sector prompted the government to supersede the board of the infrastructure lender on 1 October. IL&FS has already received several expressions of interest for acquiring its stakes in subsidiaries IL&FS Securities Services Ltd and ISSL Settlement & Transaction Services Ltd. These were the first subsidiaries the company had placed on the block in a bid to pay off debt of over 91,000 crore.

On 22 November, Mint had reported that investment banks hired by IL&FS have started reaching out to potential investors to gauge their interest in the assets of the cash-strapped company, particularly road and renewable energy assets.

Debt-laden Infrastructure Leasing and Financial Services Ltd (IL&FS) on Wednesday said it will soon invite expressions of interest for its renewable energy business. The stake sale may be executed as a basket, or individually, or in any combination thereof, the company said in a statement.

On wind power, IL&FS owns operating plants aggregating 873.5 megawatts (MW) and under-construction plants aggregating 104MW. It also has asset management services for wind energy and a business division conducting project development and implementation for the sector. It is also looking to sell solar power projects under development totalling 300MW capacity, the statement said, adding the IL&FS board is taking steps for public solicitation soon.

The IL&FS board had recently appointed Arpwood Capital Pvt. Ltd and JM Financial Ltd as financial and transaction advisers, and Alvarez and Marsal as resolution consultants.

“The board is cognizant that these steps are required to advance the process for putting together resolution plan(s) for the IL&FS group, based on market interest and price discovery for various assets. Any binding transaction for the sale of assets, as well as the resulting resolution plan, will be subject to requisite approvals (including the NCLT) before the transactions are implemented," it added.

Serial debt defaults at IL&FS and its subsidiaries that triggered a liquidity squeeze in the non-banking financial sector prompted the government to supersede the board of the infrastructure lender on 1 October. IL&FS has already received several expressions of interest for acquiring its stakes in subsidiaries IL&FS Securities Services Ltd and ISSL Settlement & Transaction Services Ltd. These were the first subsidiaries the company had placed on the block in a bid to pay off debt of over 91,000 crore.

On 22 November, Mint had reported that investment banks hired by IL&FS have started reaching out to potential investors to gauge their interest in the assets of the cash-strapped company, particularly road and renewable energy assets.

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