New Delhi: The Infrastructure Leasing & Financial Services Ltd (IL&FS) group finalised the sale of its stake in two energy assets — Urjankur Shree Tatyasaheb Kore Warana Power Company Limited (Urjankur Warana) and IL&FS Energy Development Company Limited (IEDCL) — for a total of Rs 77.5 crore, it said in a statement on Thursday, July 28.
“Proceeds from both these sale transactions would be used by the new IL&FS board towards reducing overall debt as per the resolution framework approved by NCLAT (National Company Law Appellate Tribunal),” the company said in the statement.
IL&FS successfully sold Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd (HSF – Host Sugar Factory) a 33.33 percent share in Urjankur Warana. IEDCL, which owns a 33.33 percent investment in Urjankur Warana, and Urjankur Nidhi Fund, which owns the remaining 66.67 percent, jointly promoted the SPV.
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Along with Maharashtra Energy Development Agency, which owns 50% of Urjankur Nidhi Trust, IEDCL also holds a 27.75 percent ownership in the trust. Shree Datta Shetkari Sakhar Karkhana Ltd. controls the remaining 22.25 percent.
“With this transaction, IL&FS group has sold its 33.33 percent stake in Urjankur Warana and its 27.75 percent stake in Urjankur Nidhi Trust to HSF at an aggregate consideration of Rs 62.5 crore. IL&FS has now exited both these entities completely,” the company said.
The second deal is the sale of the energy consultancy segment of IEDCL that belonged to IL&FS to PTC India Limited. PTC won the bidding war for the facility in July, at a price of roughly Rs 15 crore. The whole advising business endeavour, including its 300-person contracts and projects staff, will now relocate to PTC India.
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In order to sell its whole stake in Urjankur Warana, EDCL entered into a share purchase agreement with HSF for a price of Rs 62.5 crore, and the transaction was approved in December 2020. In the Kolhapur region of Maharashtra, Urjankur Warana is the owner of a 44 MW bagasse-based cogeneration power plant.
With these deals, IL&FS Group has 4,000 employees, which is an 80 percent decrease from 2018.
The new IL&FS board said in March that it had paid off 55,000 crores of debt, including 21,000 crores from asset monetisation, 20,000 crores from its infrastructure investment trust and cash balances, and 14,000 crores from court-filed claims. The board had kept the total estimated cost of the resolution at Rs. 61,000 crore.
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