IL&FS finalizes the sale of its stake in OTPC for Rs 1,227 cr
New Delhi: IL&FS Group has finalized the sale of its 26% stake in ONGC Tripura Power Company (OTPC) to Gas Authority of India Limited (GAIL) for an aggregate valuation of Rs 1,227 crore.
According to the Group, with this transaction, IL&FS settled a debt of around Rs 3,656 crore, which was part of the Group’s overall debt of around Rs 99,000 crore, in October 2018.
The group held its 26% stake in OTPC in two subsidiaries – approximately 12% by IL&FS Energy Development Company Ltd (IEDCL) and 14% by IL&FS Financial Services Ltd (IFIN).
“The group has duly received a total sum of Rs 319 crore for its 26% stake in GAIL in the two companies, thus closing this stake sale transaction,” IL&FS group said in a statement.
“The initial stake in the company included ONGC 50 percent, India Infrastructure Fund II 23.5 percent and the Tripura government 0.5 percent stake,” he added.
After this transaction, GAIL will now be a 26 percent shareholder in OTCP with ONGC at 50 percent, Indian Infrastructure Fund II at 23.5 percent and the government of Tripura at 0.5 percent.
The new IL & FS board of directors, in its latest update, announced that the IL&FS group had resolved over Rs 52,000 crore in debt while maintaining its overall debt resolution estimate for the group at Rs 61,000 crore .