Lone Star, Cube Highways, NIIF and others circle IL&FS assets
Photo Credit: Manni Das/VCCircle

Infrastructure Leasing and Financial Services Ltd (IL&FS) is looking to raise $2 billion (Rs 10,000-12,000 crore) from the sale of some infrastructure assets, including those in transport, energy as well as waste and water management, said a report. 

K Ramchand, chief executive of IL&FS, told Mint the firms eyeing the assets include: Singapore-based Cube Highways and Infrastructure, US private equity company Lone Star and National Investment and Infrastructure Fund. NIIF is owned by the central government (49%) as well as domestic and international investors (51%).

Ramchand said the company has received binding offers for 14 assets and would close these deals within the next quarter. 

The group companies of IL&FS are present across surface transport, energy, urban asset management, maritime activities, financial services, water management and more.

Separately, the IL&FS board okayed raising Rs 4,500 crore through a rights issue, slated for completion by October-end, according to reports.

Ramchand told Mint that Central Bank of India is the only shareholder that cannot participate in the rights issue due to its bad-loan problem.   

As on 31 March 2018, Life Insurance Corporation of India held 25.34% stake in IL&FS and Japanese financial services company Orix Corporation 23.54%.

Other shareholders include sovereign wealth fund Abu Dhabi Investment Authority (12.56%), home-loan firm HDFC (9.02%), public sector lenders Central Bank of India (7.67%) and State Bank of India (6.42% stake), as well as IL&FS Employees Welfare Trust (12%).

Also, the IL&FS board okayed the recapitalisation of group firms to the extent of Rs 5,000 crore.

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