After facing significant delays, the IL&FS group is finally moving forward with the closure of its road Infrastructure Investment Trust (InvIT), with the draft prospectus expected to be submitted to the Securities and Exchange Board of India (Sebi) this week, according to sources familiar with the matter.
The InvIT, named Roadstar Infra Investment Trust, was registered with Sebi in December 2020, but progress had been hindered due to various approvals from authorities. The InvIT will initially include six road assets, valued at approximately Rs 8,500-9,000 crore, instead of the originally planned 9-10 assets.
Lenders of these assets will receive units of the InvIT, which will generate regular payouts through toll collections from the road assets. Sebi had set a deadline of March 31, 2024, for listing the units of the InvIT, prompting IL&FS to expedite the process.
The successful closure of the InvIT transaction is expected to address a significant portion of IL&FS’s outstanding debt in the road vertical, aiding in its debt resolution efforts.
As of September 30, 2023, IL&FS had repaid approximately Rs 35,650 crore of debt through asset monetization, auto debits by banks, and debt repayments. Additionally, the group had completed interim distributions totaling around Rs 10,000 crore across 14 companies.
With these resolutions, IL&FS has achieved over half of its estimated debt resolution target of Rs 61,000 crore. Major asset monetization initiatives include the sale of its headquarters in Mumbai and its stake in ONGC Tripura Power Company.
IL&FS declined to comment on the recent developments.
