IL&FS proposes to sell stakes in its RE assets of Solar and Wind projects

In a key development, IL&FS has announced that it is going to accomplish the resolution of the IL&FS group through certain procedures, including asset divestments.

As an initial step towards this end, to establish market interest, and to observe viability of maximization of value in an organized and transparent manner, the board of IL&FS has initiated the process of exploring the sale of controlling stakes held by IL&FS in renewable energy sector.

The board of IL&FS has decided to openly seek Expressions of Interest (EoI) to evaluate the interest for a sale of its stake in the renewable energy assets. The deadline for responding to the EoI is December 10, 2018.

Arpwood Capital Pvt. Ltd. and JM Financial Ltd. have been appointed as financial and transaction advisors, and Alvarez and Marsal have been appointed as resolution consultants.

The anticipated sale of stakes held by IL&FS can be carried out as a basket/individually or in any other combination.

 “Once we have responses to the EoI, we will share more details with the interested parties regarding the assets. Upon receiving further communication from the participants, we will be able to put our finger on a figure”, IL&FS official said.

According to IL&FS Board, these steps are necessary to advance the process for putting together resolution plans for the IL&FS group, based on market interest and price discovery for various assets. Any obligatory transaction for the sale of assets, as well as the resulting resolution plans, will be subject to approvals before the transactions are implemented.