Infrastructure Leasing & Financial Services (IL&FS) said it has completed the sale of its wind energy business to its Japanese partner Orix Corporation.
IL&FS has sold its 100% stake in IL&FS Wind Power Services Ltd (IWPSL) to Orix for Rs 6.06 crore ($0.79 million at current exchange rate), the debt-ridden infrastructure lender said in a statement.
IWPSL, a wholly-owned subsidiary of IL&FS Energy Development Company Ltd, is engaged in providing supervisory and management support services to seven firms that own and operate wind power generating assets.
The divestment has resulted in share transfer and a consideration of Rs 6.06 crore to IL&FS Energy that will be kept in an escrow account for its lenders, the statement said.
IWPSL, classified as a ‘green company’, has no outstanding debt, it added.
In June last year, the board of IL&FS had approved the sale of the seven units to Orix by divesting its 51% equity stake. The seven companies are Lalpur Wind Energy Pvt. Ltd, Etesian Urja Ltd, Khandke Wind Energy Pvt. Ltd, Retadi Wind Power Ltd, Wind Urja India Pvt. Ltd, Tadas Wind Energy Pvt. Ltd and Kaze Energy Ltd.
Orix’s offer was matched with state-run gas distributor GAIL (India) Ltd’s offer in April. GAIL had emerged as the highest bidder by offering Rs 4,800 crore for IL&FS’s wind energy portfolio.
Orix already owns a 49% stake in each of seven operating wind energy units of IL&FS. The Japanese company had shown interest to buy the remaining stake to own 100% shareholding of IWPSL in May.
IWPSL has over 40 employees and is the first company to go out of IL&FS Group with employees. The resolution framework for IL&FS Group was approved by National Company Law Appellate Tribunal (NCLAT) on March 12, 2020.
The proposed resolution options for over 300 subsidiaries of IL&FS Group include the sale of companies, restructuring, recovery and winding down through a process overseen by retired Supreme Court Justice D.K. Jain and NCLT.
In January this year, the IL&FS board was planning a sale of its real estate assets worth Rs 3,500 crore and also its stakes in Gujarat International Finance Tec-City (Gift City) valuing approximately Rs 1,200 crore.
In November last year, the firm got approval from its lenders to sell its majority holding in Schoolnet India Ltd (formerly known as IL&FS Education & Technology Service Ltd) to Career Point Publications Pvt. Ltd (CPPPL).