IL&FS Group has announced an interim distribution of ₹5,000 crore, comprising ₹3,500 crore in Infrastructure Investment Trust (InvIT) units and ₹1,500 crore in cash, as part of its ongoing resolution plan. With this payout, the total debt discharged across IL&FS Group companies will stand at ₹43,000 crore, covering over 70% of its ₹61,000 crore debt resolution target.
Key Highlights of the Distribution
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The three major holding companies initiating this payout are:
- Infrastructure Leasing and Financial Services (IL&FS) Limited
- IL&FS Financial Services Limited (IFIN)
- IL&FS Transportation Networks Limited (ITNL)
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The InvIT units have been issued by Roadstar Infra Investment Trust, which holds six key road assets, including:
- MBEL, SBHL, PSRDCL, BAEL, TRDCL, and HREL
- These assets have a total enterprise valuation of ₹8,576 crore.
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This move facilitates timely payouts to creditors, especially public funds and institutional investors, without waiting for the final resolution of IL&FS entities.
Impact on Debt Resolution
- ₹43,000 crore of debt resolved post this payout.
- The total interim distribution across IL&FS Group entities will exceed ₹17,000 crore, including ₹3,500 crore in InvIT units.
- ₹1,500 crore in cash is being distributed in addition to ₹12,000 crore already disbursed to creditors over the last two years.
Beneficiaries of the Payout
- Banks and Institutions Receiving Units or Cash:
- Bank of Baroda, Canara Bank, SBI, ICICI Bank, DBS, LIC MF, IndusInd Bank.
- Public Funds Benefiting from the Distribution:
- Post Office Life Insurance Fund, NPS Trust, LIC P&G Fund, SBI Employee Provident & Pension Funds, Infosys EPF Trust, Army Group Insurance Fund, Coal Mines Provident Fund, National Insurance Provident & Pension Funds, NTPC Provident & Pension Funds.
IL&FS Board’s Strategy & Future Plans
- The record date for InvIT unit allocation and cash distribution is February 17, 2025.
- IL&FS opted for the InvIT route in 2019 after individual asset monetization efforts failed to yield strong results.
- The IL&FS Board remains committed to expediting the resolution of remaining assets, aiming to meet the ₹61,000 crore debt resolution target.
Nand Kishore, CMD of IL&FS Group, stated:
“This payout marks a major milestone in resolving IL&FS’s debt. The interim distribution ensures timely fund release to creditors, particularly public funds, strengthening financial recovery efforts.”
This initiative represents a significant step toward financial recovery, ensuring creditors receive their dues while maintaining liquidity within the financial ecosystem.
