In a major development, the Infrastructure Leasing & Financial Services Ltd (IL&FS) has announced that it is going to achieve the resolution of the IL&FS group through certain measures, including asset divestments.

As a first step towards this end, to ascertain market interest, and to examine feasibility of maximization of value in an orderly and transparent manner, the board of IL&FS has initiated the process of exploring the sale of controlling stakes held by IL&FS in renewable energy sector.

The board of IL&FS has decided to publicly solicit Expressions of Interest (EoI) to assess the interest for a sale of its stake in the renewable energy assets. The deadline for responding to the EoI is December 10, 2018.

Arpwood Capital Pvt. Ltd. and JM Financial Ltd. have been appointed as financial and transaction advisors, and Alvarez and Marsal have been appointed as resolution consultants.

IL&FS Renewable Energy Assets

• Operating wind power generating projects with aggregate capacity of 873.5 MW, as well as under construction wind power projects with total capacity of 104 MW.
• Asset management services for the operating wind power projects as well as the business division conducting project development and implementation of wind power projects.
• Special Purpose Vehicle (SPV) which has developed, operates and maintains solar power projects against fixed cash flows
• Businesses relating to project development and implementation of solar power projects under development of approximately 300 MW solar photovoltaic (PV) for corporates.

The proposed sale of stakes held by IL&FS can be carried out as a basket/individually or in any other combination.

Speaking to Mercom, an IL&FS official said, “Once we have responses to the EoI, we will share more details with the interested parties regarding the assets. Upon receiving further communication from the participants, we will be able to put our finger on a figure.”

According to IL&FS Board, these steps are required to advance the process for putting together resolution plans for the IL&FS group, based on market interest and price discovery for various assets. Any binding transaction for the sale of assets, as well as the resulting resolution plans, will be subject to approvals before the transactions are implemented.

In India, inorganic growth is common in the renewable energy sector. Recently, CLP India and Suzlon were also in the news as Suzlon executed a deal for the sale of Tornado Solarfarms Limited to CLP for ₹324.9 (~$4.61) million.

Image Credit: IL&FS