 "IL&FS invites expression of interest for 42% stake in engineering arm")
Infrastructure Leasing and Financial Services (IL&FS) has sought expressions of interest (EoI) for the 42.25 per cent stake it holds along with IL&FS Financial Services (IFIN) in subsidiary IL&FS Engineering and Construction Company (IECCL) under the group's resolution process.
The transaction if successful would lead to change in the promoter of the IECCL. The company has an outstanding debt of around Rs 4,700 crore.
In an advertisement seeking EoIs, IL&FS said that IECCL has more than three decades of experience in the engineering and construction business with capabilities in providing integrated engineering, procurement and construction services.
"IECCL is primarily executing infrastructure projects across India and has been delivering projects in the sectors of power, oil and gas, roads, railways and metros, water and irrigation and building and structure," it said.
IL&FS has sought EoIs by 5 p.m. on October 14.
Speaking at the Annual General Meeting of IECCL on Wednesday, the IL&FS MD, C.S. Rajan said that IECCL has been passing through challenging circumstances for the past couple of years and the present effortsare directed to complete the projects at hand, monetise and preserve value of the assets and keep the entity afloat till a viable resolution of the entity is arrived at.
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"The resolution plan is under discussion with the stakeholders. One of the options under consideration for resolution is change in the promoter for this entity, one who can provide the requisite support to the company to enable it to emerge stronger from this crisis and gain its due place in the infrastructure space," Rajan said.
--IANS
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