As the new board of Infrastructure Leasing & Financial Services Ltd tries to salvage its balance sheet by selling some of its assets, many prominent banks are keen to buy its securities arm, IL&FS Securities Services Ltd (ISSL).
A dozen bidders have expressed interest and they include prominent private lenders such as ICICI Bank, HDFC Bank and Axis Bank. The new board expects the ISSL sale to bring in 4 billion rupees (US$56.1 million), The Economic Times reports.
The procedure for selling the unit started on November 12 and the last date for submission of response was November 23.
Road assets on sale
The new board of IL&FS, headed by prominent banker Uday Kotak, has also put many of its road assets on sale as part of its debt-resolution plan. These assets mainly belong to IL&FS subsidiaries. It may sell these assets either together or individually, depending on investors’ interest.
IL&FS has an overall debt of around 910 billion rupees and had earlier approached the National Company Law Board to resolve its problems with creditors, without going in for liquidation.
The government took control of the troubled infrastructure group after multiple defaults to prevent a contagion in India’s financial markets.