"IL&FS Subsidiary Sells Jorabat Shillong Road Project to Sekura Roads to Reduce Debt"

In a significant strategic move, IL&FS Transportation Networks Ltd. (ITNL) has recently formalized a restated share purchase agreement with Sekura Roads Private Ltd. The agreement facilitates the complete sale and transfer of ITNL's equity shareholding in Jorabat Shillong Expressway Ltd (JSEL) to Sekura Roads.

The proceeds garnered from this transaction, totaling ₹1,343 crore, will be instrumental in settling the outstanding liabilities of JSEL, which amount to an aggregate of ₹1,621 crore. Remarkably, the enterprise value of the company has been determined at ₹1,343 crore, while the equity value, based on this assessment, emerges as negative. Consequently, the transfer of the entire 100 percent equity stake is executed at a nominal value of ₹1.

For context, in the fiscal year 2017-18, Jorabat Shillong Expressway Ltd recorded a total revenue of ₹380.03 crore, inclusive of other income. This figure represents 3.89 percent of ITNL's consolidated revenue, which stood at ₹9,778.92 crore during that financial year.

On a broader scale, Infrastructure Leasing & Financial Services (IL&FS) has made significant progress in reducing its aggregate debt burden, with approximately ₹35,650 crore successfully repaid as of September 30, 2023. The debt reduction strategy has been executed through a combination of asset monetization, automatic debit mechanisms by banks, and debt repayment, including interim distributions, across various entities within the IL&FS Group.

Furthermore, the IL&FS Group has concluded interim distributions amounting to approximately ₹10,000 crore across 14 companies. These distributions encompass two vertical holding companies, ITNL and IFIN, along with the Group's central holding company, IL&FS Ltd. This strategic restructuring and financial realignment signify a pivotal phase in IL&FS's ongoing efforts to strengthen its financial position and fulfill its debt reduction objectives.

HBL