IL&FS to receive first set of bids under asset monetization process on Monday1 min read . Updated: 17 Mar 2019, 03:14 PM IST
- IL&FS board will later consider bids for ₹8,000 crore renewable energy business
- LIC is the single largest shareholder with over 25% stake in IL&FS
New Delhi: Cash-strapped IL&FS Group will receive first set of bids under asset monetization process on Monday as part of resolution process, according to sources.
IL&FS board will later consider bids for ₹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 asset monetization process as part of resolution process by government-appointed and Uday Kotak-led new board, they added.
The group, which is sitting on the debt of about ₹94,000 crore debt, 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-mw, and under-construction such 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 ₹5,000 crore.
When contacted IL&FS spokesperson declined to comment on the same.
According to sources, nearly two dozen firms had participated in the expression of interest sought by the company that ended on December 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 per cent stake in IL&FS and Orix Corp owns a little over 23 per cent.
IL&FS Employees Welfare Trust holds 12 per cent in the company. The Abu Dhabi Investment Authority, HDFC and Central Bank of India hold 12.56 per cent, 9.02 per cent and 7.67 per cent, respectively, in the cash-strapped company. The country's largest lender SBI has around 7 per cent stake in the company.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.