IL&FS Transportation Networks to sell expressway unit

14 Oct 2024 , 09:31 AM

On Friday, IL&FS Transportation Networks Ltd agreed to sell its subsidiary, Barwa Adda Motorway Ltd, to Roadstar Infra Investment Trust for ₹545.6 Crore through a Share Purchase Agreement (SPA). According to an exchange filing, the agreement also includes the assignment of Barwa Adda’s receivables.

This sale follows a National Company Law Tribunal (NCLT) order issued in September and October 2021, which permitted the deal to proceed. Under the arrangement, IL&FS will transfer 24.35 Crore equity shares of Barwa Adda for only ₹1, as the equity value is zero after liabilities.

Additionally, IL&FS would assign receivables of ₹13,029.34 Crore from Barwa Adda to the Trust, with a total price of ₹545.55 Crore to be received partly in cash and partially in Trust units.

The deal is scheduled to close on October 31, 2024. In the previous fiscal year, Barwa Adda contributed ₹679.55 Crore, or 6.95%, to IL&FS’ overall income of ₹9,778.92 Crore.

This action is part of IL&FS’ effort to streamline operations and strengthen its financial position.

Infrastructure Leasing & Financial Services Limited (IL&FS) is an Indian corporation that creates and funds infrastructure projects. IL&FS was founded by public-sector banks and insurance companies and has participated in some of India’s greatest infrastructure projects.

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