IL&FS Group Begins ₹5,000 Crore Payout, Includes InvIT Units.

IL&FS Group companies have commenced an interim distribution of ₹5,000 crore, comprising ₹3,500 crore in Infrastructure Investment Trust (InvIT) units and ₹1,500 crore in cash, to eligible creditors as part of their ongoing resolution efforts.

The payout is being primarily executed by three key holding companies—Infrastructure Leasing and Financial Services (IL&FS), IL&FS Financial Services (IFIN), and IL&FS Transportation Networks (ITNL)—which collectively manage a significant portion of the Group’s debt and major creditors, including public funds.

The InvIT units have been issued by Roadstar Infra Investment Trust, which holds six underlying road assets with an Enterprise Valuation of ₹8,576 crore. These units are being distributed through a private placement, followed by listing, in compliance with SEBI regulations.

This milestone enhances creditor recoveries for six Special Purpose Vehicles (SPVs), including Group entities IL&FS, IFIN, ITNL, and Sabarmati Capital One, which had extended loans to these SPVs.

Following this payout, the total debt resolved across IL&FS Group companies will reach approximately ₹43,000 crore—surpassing 70% of the total resolution target of ₹61,000 crore. The aggregate interim distribution across all Group companies post this payout will exceed ₹17,000 crore, including ₹3,500 crore in InvIT units. The cash payout of ₹1,500 crore adds to the ₹12,000 crore already disbursed to eligible creditors across 12 IL&FS Group entities over the past two years under the approved interim distribution framework.

“This payout marks a crucial milestone for the Group, resolving six major road assets through the InvIT route. It facilitates timely fund release to creditors, including several public funds at the holding company level, without waiting for the final resolution of IL&FS Group entities. The public interest board is working towards expediting the resolution of remaining assets and is confident of achieving the total aggregate debt resolution target of ₹61,000 crore,” said Nand Kishore, Chairman and Managing Director, IL&FS Group.

HBL