IL&FS in deal to transfer first road asset to InvIT for over Rs.370 crore

NEW DELHI : The IL&FS Group has entered into a share purchase agreement with Axis Trustees Services Ltd for sale and transfer of its entire holding in Moradabad Bareilly Expressway Ltd for ₹373.59 crore.
The sale marks the transfer of the first road asset to a recently-formed IL&FS InvIT, Roadstar Infra Investment Trust. Axis Trustees Services Ltd had been appointed as the trustee of the InvIT. IL&FS has also assigned debt of about ₹14.34 crore held by its subsidiary IL&FS Transportation Networks Ltd in Moradabad Bareilly Expressway Ltd to the new InvIT. The consideration for equity and debt transfer would be in the form of units of the InvIT. The sale of the road asset is expected to be completed by 31 December, IL&FS informed the exchanges late on Monday. The special purpose vehicles (SPVs) of these six projects would be transferred to the InvIT at an aggregate valuation of ₹9,214 crore, determined by an independent valuer. appointed in accordance with regulations laid down by the Securities and Exchange Board of India (Sebi). The valuation presents a significantly improved recovery for the creditors of these SPVs, as well as group companies that have provided debt to these SPVs. On transfer to the InvIT, these SPVs would start servicing the debt of IL&FS group companies. The valuation presents a significantly improved recovery for the creditors of these SPVs as well as group companies that have provided debt to these SPVs.
IL&FS received approval for launching phase-I of its InvIT from the National Company Law Tribunal (NCLT) in late October. The valuation presents a significantly improved recovery for the creditors of these SPVs as well as group companies that have provided debt to these SPVs.
In FY18, the total revenue of Moradabad Bareilly Expressway Ltd was ₹300.16 crore, which is 3.07% of the consolidated revenue of ₹9,778.92 crore of the company in that year.
IL&FS had earlier said that it proposes to transfer six road projects, including the Barwa Adda Expressway Ltd, Baleshwar Kharagpur Expressway Ltd, Sikar Bikaner Highway Ltd, East Hyderabad Expressway Ltd, Moradabad Bareilly Expressway Ltd, and Jharkhand Road Projects Implementation Co. Ltd, to Roadstar Infra Investment Trust under its InvIT phase-I.The special purpose vehicles (SPVs) of these six projects would be transferred to the InvIT at an aggregate valuation of ₹9,214 crore, determined by an independent valuer. appointed in accordance with regulations laid down by the Securities and Exchange Board of India (Sebi).
The valuation presents a significantly improved recovery for the creditors of these SPVs, as well as group companies that have provided debt to these SPVs. On transfer to the InvIT, these SPVs would start servicing the debt of IL&FS group companies.The valuation presents a significantly improved recovery for the creditors of these SPVs as well as group companies that have provided debt to these SPVs.