MUMBAI: The move to divest assets of the IL&FS group has gathered steam with the Uday Kotak-led board inviting expressions of interest for renewable energy assets worth over Rs 8,000 crore. Norway’s state-owned renewable energy producer Statkraft is among those that have shown interest in acquiring the assets. Other investors that are likely to bid include I Squared Capital, Actis, Macquarie and the Hinduja Group. (See: IL&FS)
New York-headquartered I Squared Capital had raised $7 billion in August for investment in infrastructure. The investment firm is looking at renewable energy and highway projects in India. Actis private equity is reported to have finalised a deal to buy solar power projects of Essel Group in a deal in excess of Rs 5,500 crore.
Before the new government-appointed board took charge, IL&FS had put its wind assets on the block. The company had moved ahead on a proposal to merge Orient Green Power’s wind power business with IL&FS Wind Energy. However, this proposal fell through, resulting in the mandate for an outright sale.
The assets for which expressions of interest (EoIs) have been sought from investors include operating wind power-generating plants with aggregate capacity of 874MW, as well as under-construction wind power-generating plants with aggregate capacity of 104MW. There is also a separate business relating to project development and implementation of solar power-generating plants and projects under development of approximately 300MW capacity.
Additionally, the renewable energy division includes asset-management services for the operating wind power-generating plants as well as the business division conducting project development and implementation of wind power-generating plants. The company said that the proposed stake sale may be carried out as a basket or individually or in any combination.
At present, the lender is seeking EoIs and the actual sale would happen only after it is cleared by the National Company Law Tribunal (NCLT). The divestment is part of a resolution plan based on a report submitted to the ministry of corporate affairs on the way forward. This report was subsequently submitted to the tribunal. “The board is cognisant that these steps are required to advance the process for putting together resolution plan(s) 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 plan(s), will be subject to requisite approvals (including the NCLT) before the transactions are implemented,” a statement issued by IL&FS said.
Earlier this month, IL&FS had put on the block two companies in the financial services business — IL&FS Securities Services and ISSL Settlement & Transaction Services — for which it had received over a dozen bids.