IL&FS Transportation Files Draft Papers to List Road InvIT, Plans Debt Resolution

4 Apr 2024 , 01:14 PM

IL&FS Transportation Networks Ltd has filed draft papers with the Securities and Exchange Board of India (SEBI) to list its road infrastructure investment trust (InvIT). The disclosure was made on April 3, following reports indicating the impending filing after a prolonged delay in the process.

The InvIT, named Roadstar Infra Investment Trust, received registration from SEBI in December 2020. Initially planned for 9-10 assets, the InvIT will now include six road assets with an estimated enterprise valuation between ₹8,500-9,000 Crore. Lenders of these assets will receive units in the InvIT, entitling them to regular payouts from toll collections.

IL&FS Transportation has transferred ownership of five road SPVs to the trust and is in the process of transferring a sixth SPV.

Roadstar Infra Pvt Ltd (RIPL), a wholly owned subsidiary of IL&FS Transportation, acts as the sponsor for the Roadstar InvIT. The Draft Placement Memorandum outlines the listing of units allocated to IL&FS Group entities for stakes in road projects SPVs. Debt owed by these SPVs has been reassigned to IL&FS Transportation and other group entities.

IL&FS Transportation plans to distribute received units to eligible creditors in accordance with directives from NCLT and NCLAT. The group aims to determine the net units available post-finalization of the placement memorandum. Units issued are held by IL&FS Transportation on behalf of its creditors, as per the company’s statement. Following its 2018 collapse, IL&FS Group has been undergoing debt resolution processes, discharging a significant portion of its debt by September 30, 2023.

An aggregate payment of approximately ₹10,000 Crore has been distributed across 14 companies within the group, including two vertical holding companies and the group holding company IL&FS Ltd.

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