Infrastructure Leasing and Financial Services (IL&FS), which has a bad debt burden of over ₹1 trillion, on Monday completed the sale of its 50% stake in Gujarat International Finance Tec-City Co. Ltd (GIFTCL) to the Gujarat government, represented by the Gujarat Urban Development Co., or GUDCL.
IL&FS has received ₹32.71 crore as equity value for the shares. The sale will additionally reduce its consolidated debt by over ₹1,230 crore, IL&FS said in a press release.
The sale was completed following the approval of the principal bench of the National Company Law Tribunal (NCLT) on 22 May. GUDCL, as the joint venture partner and the holder of the remaining 50% in GIFTCL, offered to purchase IL&FS’s share through the exercise of a contemplated right of first refusal under the joint venture agreement.
GIFTCL is a real estate developer, which is currently developing an international financial services city in the Ahmedabad-Gandhinagar region.
“This development represents another key milestone in the overall resolution for the IL&FS group under the new board,” it added.
