Economy

IL&FS looks to restructure company, may exit project financing, says report

Updated : September 28, 2018 10:14 AM IST

IL&FS’ shareholders may consider to put up some assets of the infrastructure development and finance major for sale as it is facing severe liquidity crunch.

The Piramal Group had made an offer to buy a majority stake in the company few years ago but a consensus could not be reached.

Debt-ridden Infrastructure Lending and Financial Services’ (IL&FS) shareholders are considering a restructuring proposal with focus mainly on the management and execution of infrastructure projects. They are also looking at exiting long-term project financing, Business Standard reported.

The shareholders may put up some assets of the infrastructure development and finance major for sale as the firm is facing severe liquidity crunch, sources told the paper.

The Piramal Group had made an offer to buy a majority stake in the company few years ago but a consensus could not be reached due to a difference of opinion on the fair valuation of the company between the buyers and one of the key stakeholders of IL&FS, the report said.

IL&FS had undertaken the Zojila tunnel project as one of its EPC (engineering, procurement and construction) contract, which will provide all-year connectivity between Srinagar and Leh, and is focusing more on EPC contracts rather than bidding for build-operate-transfer (BOT) projects, added the report.

IL&FS looks to restructure company, may exit project financing, says report

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