Industry

IL&FS sells Schoolnet stake, settles ₹650-cr. debt

The IL&FS Group has sold 73.69% stake in its education business, held under Schoolnet India Ltd. (SIL), to Falafal Technologies Pvt. Ltd. (FTPL).

“The transaction provides positive equity value to IL&FS and resolves nearly ₹650 crore of consolidated fund-based and non-fund- based financial debt, without any haircut to lenders,” the IL&FS Group said.

The sale was completed following the approval given by the National Company Law Tribunal (NCLT).

FTPL has paid ₹7.4 crore as equity value for shares of SIL held by IL&FS Ltd. and IL&FS Employee Welfare Trust in addition to taking over SIL’s fund-based and non-fund based financial debt of almost ₹650 crore.

FTPL has also agreed to a deferred consideration of ₹6.3 crore payable within 18 months from the closure of the transaction. Sale of SIL will cut IL&FS Group’s operating cost for by almost 19%.

Besides, the businesses of its wholly owned arms ICDI and STAMP have also been transferred to SIL through a slump sale for ₹1 each.

Transfer of debt of almost ₹27 crore in ICDI and STAMP forms part of the sale.

Further, the shares of ICDI and STAMP have been transferred to IL&FS Ltd.

SIL will continue to retain 80.01% in ISDC which will become a step down subsidiary of FTPL.

“This development represents another key milestone in the overall resolution for the IL&FS Group under the new board,” IL&FS Group said in a statement.

As part of the overall resolution plan to address a significant portion of the Group’s debt, the sale of a number of other Group assets has been initiated which is currently in various stages of progress, it added.

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Printable version | May 19, 2021 9:17:41 AM | https://www.thehindu.com/business/Industry/ilfs-sells-schoolnet-stake-settles-650-cr-debt/article32565149.ece

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