IL&FS transfers Pune Sholapur Road asset to Invit at enterprise value of Rs 2,000 cr

IL&FS has completed the transfer of its fifth road asset – Pune Sholapur Road Development Company Limited (PSRDCL) – to Roadstar Infra Investment Trust (Invit) as part of its debt settlement strategy.

With this conversion, the secured lenders of this asset will receive a full refund of their receivables under the Invit structure while the group lenders will issue Invit units as settlements to their loans, IL&FS said in a statement.

The four road assets already transferred to the Invit structure include – Moradabad Bareilly Expressway Limited (MBEL); Sikar Bikaner Highway Limited (SBHL); It added Hazaribagh Ranchi Expressway Limited (HREL) and Thiruvananthapuram Road Development Company Limited (TRDCL).

The total enterprise value of Invit, with these five assets, is now around Rs 7,300 crore.

The new IL&FS Board, as part of its strategy to settle Rs. 99,000 crore debt (as of October 2018), has chosen to use the Invit route to process approximately Rs. 15,000 crore debts under its road assets.

According to January filings by the group, a total of 10 road assets will be transferred under the Invit structure, in phases, with only five road assets transferred so far.

(Only the title and image for this report may have been reworked by the Business Standard team; the rest of the content is generated automatically from a shared feed.)

First published: May 14, 2023 | 6:48 PM ist