Fourteen groups have bid on an INR 20,000 crore ($2.7 billion) roads portfolio owned by the financially-troubled Infrastructure Leasing & Financial Services (IL&FS).
Some of the bidders include I Squared Capital, the National Investment and Infrastructure Fund (NIIF), Cube Highways, and Edelweiss Financial Services, which have submitted bids for 10 road assets with debt of INR 17,700 crore ($2.4 billion), according to The Economic Times.
The road assets are located in Jharkhand, Tamil Nadu, Maharashtra, Rajasthan, West Bengal, Meghalaya and Uttar Pradesh.
IL&FS owes in excess INR 1-lakh crore ($15.38 billion) after defaulting on its payments last year, reported The Hindu Business Line. It is in the process of selling some of its assets to meet debtor obligations.
In August, IL&FS sold its 51 percent stake in its wind energy business, along with its portfolio of seven wind assets to partner Japanese Orix Corporation. The sale transferred full ownership to Orix, which already owns a 49 percent stake in the wind farm. In May, Orix initially expressed interest in buying out the company, which includes seven group companies.
The wind companies are comprised of Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Retadi Wind Power, Wind Urja India, Tadas Wind Energy and Kaze Energy.
The INR 4,800 crore ($687 million) transaction will reportedly cover the company’s entire debt.
“Bidders are interested in buying individual assets, and they will start due diligence soon,” a person with knowledge of the matter told The Economic Times. “Like in the case of wind energy assets, investment in equity will be small, and a large chunk will go towards wiping out debt. The bid will include investment of Rs 2,000-3,000 crore into equity of these road assets.”
