IL&FS Sells 50% Stake In GIFT City To Gujarat Government
Companies
PTI
Mumbai |
Updated on
June 08, 2020
Published on
June 08, 2020
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 ₹32 crore for its equity value and also reducing its consolidated debt by more than ₹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 ₹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 ₹1,230 crore. The group’s current outstanding debt is over ₹94,000 crore.
The stake sale was approved by the National Company Law Tribunal (NCLT) 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 (GIFTCL), offered to purchase IL&FS’s share in GIFTCL through exercise of a contemplated right of first refusal under the joint venture agreement.
As per the resolution framework for IL&FS Group, the offer by GUDCL was placed before the committee of creditors (CoC) of the group for its approval, the release said.
Almost 80.09 per cent (by value) of the CoC voted in favour of the proposal, it said.
GIFTCL is engaged in the business of real estate development and is developing an international financial services city in the Ahmedabad-Gandhinagar region, including design, development, financing, operation and maintenance of the same.
Published on
June 08, 2020
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PTI
Mumbai |
Updated on
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 ₹32 crore for its equity value and also reducing its consolidated debt by more than ₹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 ₹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 ₹1,230 crore. The group’s current outstanding debt is over ₹94,000 crore.
The stake sale was approved by the National Company Law Tribunal (NCLT) 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 (GIFTCL), offered to purchase IL&FS’s share in GIFTCL through exercise of a contemplated right of first refusal under the joint venture agreement.
As per the resolution framework for IL&FS Group, the offer by GUDCL was placed before the committee of creditors (CoC) of the group for its approval, the release said.
Almost 80.09 per cent (by value) of the CoC voted in favour of the proposal, it said.
GIFTCL is engaged in the business of real estate development and is developing an international financial services city in the Ahmedabad-Gandhinagar region, including design, development, financing, operation and maintenance of the same.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.
Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.
In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.
We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.
A little help from you can make a huge difference to the cause of quality journalism!
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