IL&FS sells Gujarat International Finance Tec-City stake
Debt-laden IL&FS on Monday said it has completed the sale of its 50 per cent stake in Gujarat International Finance Tec-City (GIFT City) to the Gujarat government, generating over Rs 32 crore for its equity value and also reducing its consolidated debt by more than Rs 1,200 crore.
The stake in GIFT City was bought by Gujarat Urban Development Company Ltd (GUDCL), on behalf of the Gujarat government. “IL&FS has duly received Rs 32.71 crore as equity value for shares as a sale consideration,” the group said in a press release.
IL&FS further said the sale will additionally reduce its consolidated debt by Rs 1,230 crore. The group’s current outstanding debt is over Rs 94,000 crore. The stake sale was approved by the National Company Law Tribunal last month.
GUDCL, as the joint venture partner and the owner of the balance 50 per cent stake in Gujarat International Finance Tec-City Company Ltd, offered to purchase IL&FS’s share in GIFTCL through exercise of a contemplated right of first refusal under the joint venture agreement.
The promoters of IndusInd Bank are set to raise their stake in the private lender from 14.68 per cent at present.
In a regulatory filing to the stock exchanges late on Sunday evening, the private sector bank said that the promoters want to up their holdings to the overall cap prescribed by the RBI, which is 15 per cent. The announcement led to shares of the private bank surging almost 7 per cent on the bourses on Monday.