Industry

IL&FS places two subsidiaries on the block

Troubled financial conglomerate Infrastructure Leasing and Financial Services (IL&FS) has kick-started the asset monetisation exercise as it has decided to sell its stake in two of its subsidiaries — IL&FS Securities Services and ISSL Settlement and Transactions Services Ltd., — both engaged in the securities services business. The asset sale is a part of the broader plan for the resolution of the company.

In a statement on Monday, IL&FS said the board has decided to publicly solicit expressions of interest to assess the interest for a sale of its stake in these two subsidiaries. IL&FS Securities Services is a professional clearing member in equity and other derivatives, and ISSL is engaged in providing clearing services in the commodities derivative segment.

“The board is cognisant that these steps are required to advance the process for putting together a resolution plan for the IL&FS group, based on market interest and price discovery for various assets,” the statement said.

“Any binding transaction for the sale of assets, as well as the resulting resolution plan, will be subject to requisite approvals (including the NCLT) before the transactions are implemented,” it said.

In its report submitted to the Ministry of Corporate of Affairs, which in turn was submitted to National Company Law Tribunal, the board of IL&FS has outlined a resolution plan that included asset sale, among other measures. The board said it expected the resolution process to be completed in six to nine months, subject to economic and market conditions.


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Printable version | Dec 6, 2021 12:37:10 AM | https://www.thehindu.com/business/Industry/ilfs-places-two-subsidiaries-on-the-block/article25479360.ece

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