India’s state-run infrastructure development and finance company Infrastructure Leasing & Financial Services Limited (IL&FS) is looking to sell its entire stake in IL&FS Tamil Nadu Power Company (ITPCL).
ITPCL is a subsidiary of IL&FS Energy Development Company (IEDCL), which is also a part of IL&FS Group.
The group holds a 92.42% stake in ITPCL, through IEDCL and IL&FS, and Foreign Currency Convertible Debentures owned by IEDCL, worth INR4.2bn ($50.4m).
The company invited potential bidders to submit their expressions of interest before 18 December 2023.
IL&FS is planning to sell its shareholding in ITPCL as part of a framework to restructure the outstanding debt of IEDCL with approval from lenders.
It is currently in a filing process at the National Company Law Appellate Tribunal (NCLAT) to convert from an amber to a green category company.
IL&FS has repaid debt of about INR356.5bn ($4.28bn) as of 30 September 2023, which indicates considerable progress in its debt resolution process.
It has repaid the debt through the monetisation of assets, auto debits by banks and debt repayment across entities.
The group has also completed a total payment of about INR100bn ($1.2bn) via interim distribution across 14 companies, including two vertical holding companies.
Incorporated to set up a 3,180MW thermal power plant, ITPCL currently operates a 1,200MW thermal power plant, with two units of 600MW each in Cuddalore, Tamil Nadu.
The company has executed a 15-year long-term power purchase agreement (PPA) for Unit 1 with Tamil Nadu Generation and Distribution Company (TANGEDCO).
ITPCL also holds a 5,908-ha coal mining license in Upau, South Kalimantan, Indonesia, and is building a captive port adjacent to the ITPCL power plant.
