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Infrastructure Leasing & Financial Services Ltd. has invited buyers to purchase a stake in two of its subsidiaries in order to bring back the debt-laden group into life. According to the company’s press release the government-appointed board has announced to open a public bidding process.
The bidding process is placed in order to obtain expression of interest for IL&FS Securities Services Ltd. and ISSL Settlement & Transaction Services Ltd. which offer clearing services for equity and commodity derivatives.
According to some media reports IndusInd Bank had earlier signed a definitive agreement to acquire the subsidiary in July but then failed to do so after the financial crisis hit IL&FS. IL&FS Securities Services had a revenue of Rs 324.5 crore and profit after tax of Rs 45 crore for the financial year ending March 2018.
The sale of IL&FS subsidiaries will be managed by Arpwood Capital and JM Financial which are appointed as financial and transaction advisers along with Alvarez & Marsal who are appointed as the resolution consultant.
Prior to the announcement of the asset sale, NCLT approved the new board plans for the group’s revival on Oct. 31, which included a resolution at the group, subsidiary and asset-levels.
