IL&FS invites expression of interest for stake sale in IL&FS Securities Services, ISSL Settlement & Transaction Services

IL&FS Transportation Networks | The company defaulted on the interest on non-convertible debentures due on August 25, 2020. (Image: Reuters)

The revamped board of the beleaguered IL&FS has set the ball rolling to get the house in order by calling for stake sale in two of its subsidiaries - IL&FS Securities Services Ltd and ISSL Settlement & Transaction Services Limited.

The board released a statement saying that it has appointed Arpwood  Capital Pvt  Ltd and JM Financial Ltd as financial & transaction advisors, alongwith Alvarez & Marsal as resolution consultants.

The IL&FS turmoil has roiled the financial markets and spooked investors, raising concerns about India's shadow banks and its operations.

IL&FS has an 81.24 percent shareholding in ISSL, followed by IL&FS Employee Welfare Trust with nine percent, Japan's ORIX Corporation with 4.75 per cent and Croupier Prive Mauritius with five percent.

Since taking over, the new board has appointed members to the boards of eight key IL&FS companies, including IL&FS Financial Services, IL&FS Transportation Networks, IL&FS Environmental Infrastructure and Services, IL&FS Energy Development and IL&FS Engineering and Construction.

Meanwhile, IndusInd Bank has confirmed that its agreement to fully acquire ISSL has been terminated due to non fulfilment of conditions.