IL&FS Lists Roadstar Infra InvIT Units On NSE As Part Of Debt Restructuring Strategy
In 2019, the IL&FS Board chose the InvIT route due to weak responses from individual road asset monetisation efforts, with the InvIT option offering better valuations for creditors.
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Infrastructure Leasing & Financial Services listed the Roadstar Infra Investment Trust units on the NSE on Tuesday as part of its debt restructuring strategy.
According to a statement from the company, this listing followed the distribution of InvIT at an enterprise valuation of Rs 8,592 crore, showcasing IL&FS Group’s capability to effectively utilise diverse financial instruments for debt resolution.
This infrastructure investment trust listing marks a significant milestone in IL&FS's debt resolution journey, highlighted by the recent completion of an interim distribution of Rs 5,000 crore to its creditors. This distribution included Rs 3,500 crore worth of InvIT units and Rs 1,500 crore in cash.
"The successful listing of IL&FS InvIT represents an innovative resolution option that was chosen and completed by the new board, thereby ensuring efficient resolution while maximising returns for our road assets," Nand Kishore, chairman and managing director of IL&FS Group, said.
"Monetisation, interim distribution and now the successful listing of Roadstar InvIT on NSE are pivotal moments in the IL&FS resolution process," he added.
Recently, IL&FS concluded its largest interim distribution payout of Rs 5,000 crore, which pegged the total debt discharged by the IL&FS Group to Rs 43,000 crore, representing 70% of its total debt resolution target of Rs 61,000 crore.
"The successful listing of IL&FS InvIT on NSE represents a significant milestone in resolving a large portion of the IL&FS debt. Following the listing, the Trust will offer a new platform for risk-averse investors interested in the alternative investment sector," Danny Samuel, chief executive officer of Roadstar Investment Managers Ltd., said.
Roadstar Infra Investment Trust, sponsored by Roadstar Infra, was established with the objective of owning, operating and investing in infrastructure projects in India, directly or indirectly, and is registered under the InvIT Regulations.
Roadstar Infra Investment Trust, through its Project Special Purpose Vehicles, has six road assets under its portfolio, aggregating to 685.16 km, located across 6 states in India—Moradabad Bareilly Expressway Ltd., Sikar Bikaner Highway Ltd., Pune Sholapur Road Development Company Ltd., Barwa Adda Motorway Ltd., Thiruvananthapuram Road Development Company Ltd., and Hazaribagh Ranchi Motorway Ltd.
In 2019, the IL&FS Board chose the InvIT route due to weak responses from individual road asset monetisation efforts, with the InvIT option offering better valuations for creditors.
As a result, following the necessary approvals, the Roadstar Infra Investment Trust was established. Roadstar Investment Managers Ltd. was appointed as its investment manager, and Elsamex Maintenance Services Ltd. as the project manager. Subsequently, six road assets were transferred to the InvIT.
(With PTI Inputs)
