IL&FS puts wind en­ergy sub­sidiary on the block

Mint Asia ST - - News - BUY TPAL B HASKAR


hit In­fra­struc­ture Leas­ing and Fi­nan­cial Ser­vices Ltd (IL&FS) has put up the as­sets of IL&FS Wind En­ergy for sale and man­dated HSBC to find a buyer, two peo­ple aware of the de­vel­op­ment said.

The 775 megawatt (MW) wind en­ergy project port­fo­lio, with an es­ti­mated value of around ₹ 4,500 crore, has been on the block for about a month. Last week, the gov­ern­ment dis­solved the board of IL&FS and ap­pointed a seven-mem­ber board, led by Uday Ko­tak, man­ag­ing direc­tor and chief ex­ec­u­tive of Ko­tak Mahin­dra Bank.

The process to sell one of In­dia’s largest wind en­ergy plat­forms was ini­ti­ated af­ter a plan to merge Ori­ent Green Power Co. Ltd’s (OGPL) wind power busi­ness with IL&FS Wind En­ergy fell through. This comes against the back­drop of un­cer­tainty over debt-laden IL&FS’S cap­i­tal-rais­ing, re­struc­tur­ing and as­set mon­e­ti­za­tion plans. “The as­sets have been up for sale for more than a month now. Even as the gov­ern­ment has stepped in, they will have to sell as­sets to take care of the debt that has been raised,” one of the two peo­ple cited ear­lier said, re­quest­ing anonymity.

At the con­sol­i­dated level, the IL&FS group has ₹ 91,091 crore of debt.

The sec­ond per­son, who also didn’t want to be iden­ti­fied, con­firmed the de­vel­op­ment, adding, “IL&FS Wind En­ergy is back on the mar­ket for sale.” The per­son added that its sale had been con­tem­plated post the failed merger with OGPL. It is pos­si­ble, though, that all old deals may be put on hold and may even be re­viewed. With the Se­ri­ous Fraud In­ves­ti­ga­tion Of­fice in­volved, val­u­a­tions might change and there is the pos­si­bil­ity of a probe into past deals.

While queries emailed to an IL&FS spokesper­son re­mained unan­swered, an HSBC spokesper­son also de­clined to com­ment.

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