Mumbai: The board of directors of Infrastructure Leasing & Financial Services (IL&FS) has decided to float expressions of interest for stake sale in IL&FS Securities Services and ISSL Settlement & Transaction Services. “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,” the company said in an exchange filing on Monday.
IL&FS holds 81.24 per cent stake in IL&FS Securities Services, IL&FS Employee Welfare Trust holds 9.01 per cent stake while ORIX Corp and Croupier Prive Mauritius hold 4.75 per cent and 5 per cent stake each. IL&FS Securities Services is a professional clearing member in equity derivatives segment while ISSL Settlement & Transaction Services is engaged in providing clearing services in the commodities derivatives segment.
The move comes as part of the recovery roadmap submitted by the newly-appointed board to the National Company Law Tribunal earlier. The board had informed the tribunal that it is considering more than one plan to turnaround the company.
The government has taken management control of the systemically important non-banking finance company after it defaulted on its debt. IL&FS has outstanding dues of around Rs 91,000 crore. The resolution process is expected to be completed in the next six to nine months. Arpwood Capital, JM Financial are financial and transaction advisors, while Alvarez and Marsal is the resolution consultants for IL&FS.Any final transaction for sale of assets will be completed only after the approval of the tribunal.
