On Monday, IL&FS announced that the sale of its stake to the Gujarat government is done. The group’s sale of a 50 percent stake in Gujarat International Finance Tec-City (GIFT City) is concluded for Rs. 32.71 crore.
Moreover, the sale will aid the group in reducing its debt by around Rs. 1,230 crore. However, the current outstanding debt stands around Rs. 94,000 crore.
As per a release, IL&FS received Rs. 32.71 crore equity value for shares as sales consideration. The deal was consented by the National Company Law Tribunal (NCLT) in the previous month. In addition, the stake into GIFT City was acquired by Gujarat Urban Development Company Ltd (GUDCL), on account of the Gujarat government.
GUDCL, as a joint venture partner and owner of a 50 percent stake in GIFT, suggested procuring shares of IL&FS via the exercise of a contemplated right of first refusal under the joint venture pact. Moreover, according to the framework for the IL&FS group, the offer was placed in front of the committee of creditors (CoC) for its approval, the release further stated. It also stated that around 80 percent of the CoC voted positive.
The GIFT company is involved in real estate development and is also expanding an international financial services city in Ahmedabad and Gandhinagar region. Furthermore, it includes the design, development, financing, operation, and maintenance for the same.
