IL&FS completes 50 per cent stake sale in GIFT city to Gujarat government

Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of its 50 per cent stake in Gujarat International Finance Tec-City Company Ltd (GIFTCL) to the Government of Gujarat, represented by the Gujarat Urban Development Company (GUDCL).

Under the sales, IL&FS received Rs 32.71 crore (US$ 4.64 million) as equity value for shares and this will additionally reduce consolidated debt of IL&FS by over Rs 1,230 crore (US$ 174.49 million), the company said in a press release.

So far, company has an outstanding debt of over Rs 1 trillion (US$ 14.19 billion).

The National Company Law Tribunal (NCLT), Principal Bench gave the approval for sale on May 22, 2020.

GUDCL, is a joint venture partner and the holder of the remaining 50 per cent 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 involved in the business of real estate development and is presently 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."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.