IL&FS Transportation Networks Ltd has filed draft papers with the Securities and Exchange Board of India to list its road infrastructure investment trust (InvIT), the company has told exchanges.
The company’s April 3 disclosure comes a day after Moneycontrol reported that after a long delay, the IL&FS group was finally set to close its road InvIT and would file draft documents with the markets regulator during the week.
The trust, which is called Roadstar Infra Investment Trust, was registered with SEBI in December 2020.
“The InvIT structure, though proposed a long time back, had been stuck so far due to various approvals from different authorities. Six road assets are being put under the InvIT as against the original plan of 9-10 assets,” a sources had told Moneycontrol.
These assets have an approximate enterprise valuation of Rs 8,500-9,000 crore. Lenders of these assets will be allotted units of the InvIT which will provide regular payouts to them through the toll collected by these road assets, the report said.
IL&FS Transportation has transferred ownership of five road SPVs and their assets to the trust and is in the process of transferring ownership of a sixth SPV, the draft documents say.
IL&FS Transportation's wholly owned subsidiary Roadstar Infra Pvt Ltd (RIPL) is the sponsor of the Roadstar InvIT.
The Draft Placement Memorandum pertains to listing the units allocated to the company and other IL&FS Group entities for stakes in road projects special purpose vehicles (SPVs).
The debt owed by these SPVs has been assigned to the company and other group entities.
Also Read | IL&FS to finally close its road InvIT; draft papers to be filed with Sebi this week
IL&FS Transportation plans to allocate received units to eligible creditors in compliance with the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) directives and the approved resolution framework for the IL&FS Group.
IL&FS Transportation will determine the net units available once the placement memorandum is finalised.
The units issued are held by IL&FS Transportation in trust for and on behalf of its creditors, the company said.
The infrastructure and financial services group whose collapse in 2018 triggered a liquidity crisis for India’s financial services system had a debt of around Rs 1 lakh crore that was handed over to a government appointed board in October 2018 for resolution.
As of September 30, 2023, IL&FS said it discharged an aggregate debt of Rs 35,650 crore by monetisation of assets, auto debits by banks and debt repayment, including interim distribution.
The group said it completed an aggregate payment of approximately Rs 10,000 crore by way of interim distribution across 14 companies - including two vertical holding companies and the group holding company IL&FS Ltd.
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