IL&FS unit sale to IndusInd hangs fire
MUMBAI: Debt-laden Infrastructure Leasing & Financial Services (IL&FS) is still awaiting payment of around Rupee 1,500 crore from IndusInd Bank, three months after announcing a deal to sell its IL&FS Securities Services Ltd (ISSL) unit to the bank.
The proposal has yet to get the clearance from the Securities and Exchange Board of India, two people in the know of the matter said. It has the approval of banking regulator Reserve Bank of India.
IL&FS has put as many as 25 projects on block to raise funds and pare down debt.
In June, IndusInd Bank signed a definitive agreement to acquire 100 per cent of the IL&FS subsidiary that specialises in the capital markets business. No financial terms were announced.
ISSL, incorporated in 2007, reported revenue of Rupee 324.5 crore in the financial year ended March 2018, down from Rupee 342.65 crore in fiscal 2017.
The company has more than 1,000 broker client accounts, foreign portfolio investors and foreign institutional investors and completes 3 million transactions every day on the stock exchanges.
The proposal has yet to get the clearance from the Securities and Exchange Board of India, two people in the know of the matter said. It has the approval of banking regulator Reserve Bank of India.
IL&FS has put as many as 25 projects on block to raise funds and pare down debt.
In June, IndusInd Bank signed a definitive agreement to acquire 100 per cent of the IL&FS subsidiary that specialises in the capital markets business. No financial terms were announced.
ISSL, incorporated in 2007, reported revenue of Rupee 324.5 crore in the financial year ended March 2018, down from Rupee 342.65 crore in fiscal 2017.
The company has more than 1,000 broker client accounts, foreign portfolio investors and foreign institutional investors and completes 3 million transactions every day on the stock exchanges.