MUMBAI : Debt-laden Infrastructure Leasing and Financial Services (IL&FS) completed the sale of its 50% stake in Gujarat International Finance Tec-City Company Ltd (GIFTCL) to the Government of Gujarat, represented by the Gujarat Urban Development Company (GUDCL) on Monday.
IL&FS has received ₹32.71 crore as equity value for shares as sale consideration. The sale will additionally reduce consolidated debt of IL&FS by over ₹1,230 crore, the company said in a press release.
The group has an outstanding debt of over ₹1 trillion.
The sale was completed pursuant after gaining the approval of the National Company Law Tribunal (NCLT), Principal Bench on May 22, 2020.
GUDCL, as the joint venture partner and the holder of the remaining 50% in GIFTCL, offered to purchase IL&FS Ltd.'s share in GIFTCL through exercise of a contemplated right of first refusal under the joint venture agreement.
GIFTCL is a company engaged in the business of real estate development and is currently developing an international financial services city in the Ahmedabad-Gandhinagar Region, including design, development, financing, operation and maintenance of the same.
"This development represents another key milestone in the overall resolution for the IL&FS group under the new board," the release said. "As part of the overall resolution plan to address a significant portion of the Group’s debt, the sale of a number of other Group assets are currently in various stages of progress."
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