IL&FS Initiates the Acquisition of its Subsidiary Energy Advisory Business

The Infrastructure Leasing and Financial Services Limited (IL&FS) has invited expressions of interest (EoI) for the acquisition of the energy advisory business of its subsidiary IL&FS Energy Development Company Limited (IEDCL).

As per the company’s documents, IL&FS started its energy business in 2008 through its subsidiary IEDCL to provide advisory services in the power sector and develop, own, and operate power generation and transmission assets in India and abroad.

IEDCL has over 3 GW of power generation capacity already in operation across diverse fuel sources. An additional 15 GW is under various stages of development.

The company’s board has engaged Arpwood Capital Private Limited and JM Financial Limited to assist in the transaction.  The last date to submit the bids is December 07, 2020.

To participate in the bidding process, the bidder’s minimum net worth should be ₹50 million (~$676,533). In case of investment funds, including private equity funds, the minimum assets under management in India by the bidder should be at least ₹200 million (~$2.7 million), or committed funds available for investments in companies incorporated in India should be at least ₹200 million (~$2.7 million).

In case the bidder is a consortium (acting through a consortium SPV or otherwise), the net worth requirement must be met based on a weighted average basis of the consortium members’ stake in the consortium.

The bidder will be exempted from fulfilling the financial criteria if it is a public sector enterprise and has a letter of support from the central government or any state government, as the case may be.

Last year, Orix, a financial services group headquartered in Tokyo, announced that it would acquire a 51% stake in seven wind power generating subsidiaries, which it jointly owned with Infrastructure Leasing & Financial Services Wind Energy Limited.

Back in 2018, Mercom reported that IL&FS had announced that it would achieve the resolution of the IL&FS group through specific measures, including asset divestments. The board of IL&FS had decided to publicly solicit EoI to assess the interest for a sale of its stake in the renewable energy assets.