Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) Group on Thursday said it has completed three sale transactions worth Rs 77.5 crore in its energy business portfolio.
In the first transaction, the group sold its 33.33 per cent stake in Urjankur Shree Tatyasaheb Kore Warana Power Company Ltd (Urjankur Warana) to Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd (HSF – Host Sugar Factory), a release said.
It has also offloaded stake in Urjankur Nidhi Trust.
Separately, it has completed the sale of its energy advisory business, a division of IEDCL, to PTC India Ltd (PTC).
Proceeds from these transactions would be used by IL&FS board towards reducing overall debt as per the resolution framework approved by the National Company Law Appellate Tribunal (NCLAT).
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Urjankur Warana is a Special Purpose Vehicle (SPV) jointly promoted by IL&FS Energy Development Company Ltd (IEDCL), which holds 33.33 per cent stake, and Urjankur Nidhi Trust, that owns the remaining 66.67 per cent stake.
IEDCL also holds 27.75 per cent stake in Urjankur Nidhi Trust. Maharashtra Energy Development Agency holds 50 per cent and Shree Datta Shetkari Sakhar Karkhana Ltd owns 22.25 per cent stake in the trust.
"With this transaction, IL&FS Group has sold its 33.33 per cent stake in Urjankur Warana and its 27.75 per cent stake in Urjankur Nidhi Trust to HSF at an aggregate consideration of Rs 62.5 crore. IL&FS has now exited both these entities completely," the release said.
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IEDCL entered into share purchase agreement with HSF for sale of its entire holding in Urjankur Warana for Rs 62.5 crore and received necessary approvals, including that from the Maharashtra government in December 2020, to conclude the sale.
Urjankur Warana owns a 44 MW bagasse-based cogeneration power plant in Kolhapur, Maharashtra, that is set up on land leased from HSF.
As per project development agreement, HSF supplies bagasse to Urjankur Warana as fuel for power generation, free of cost. The surplus power generated by Urjankur Warana is being sold to the MSEDCL, as part of a long term Power Purchase Agreement (PPA) valid up to March 2026.
In the second transaction, the group has concluded the sale of its energy advisory business, a division of IEDCL, to PTC India Ltd (PTC).
PTC emerged as the highest bidder in the process and the sale was completed on July 26, 2022, at a consideration of around Rs 15 crore, duly received by IL&FS, the release said.
The entire advisory business undertaking with its contracts and projects team, comprising close to 300 personnel (employed directly and indirectly), will now move to PTC.
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