The Uday Kotak-led board of IL&FS on Tuesday moved the Mumbai bench of the National Company Law Tribunal (NCLT), seeking its approval to complete the sale of seven wind energy assets of IL&FS to the Japan-based ORIX Corporation. The bench, headed by VP Singh and Rajesh Sharma, sought details on the enterprise valuation of these assets and reserved the order on the matter.
In June, the board had approved the sale of its entire 51% stake in the seven group companies to ORIX, which already owns 49% stake in the entities.
The IL&FS group was expected to get around Rs 4,800 crore from the sale. Earlier this year, GAIL had offered Rs 4,785.7 crore for the IL&FS stake in seven companies under IL&FS Wind Energy — Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Retadi Wind Power, Wind Urja India, Tadas Wind Energy and Kaze Energy. According to an MoU signed between IL&FS and ORIX in November 2018, the Japanese company had the right-of-first-offer, allowing it to purchase the assets at a matching price before IL&FS could sell them to GAIL.
The IL&FS board was represented by senior counsel Ravi Kadam, who informed the tribunal that as per the procedure laid out by the National Company Law Appellate Tribunal (NCLAT) on the resolution of IL&FS group entities, the board had sought and received the approval of retired Justice DK Jain and NCLAT on the terms of the sale. Kadam informed the bench that the proceeds of the sale will be kept in an escrow account.
Kadam further told the bench that two valuers for the assets, Rakesh Narula & Co and Adroit Valuation Services, had valued the assets at Rs 3,808 crore and Rs 4,386 crore, respectively. In January, the NCLAT had told the IL&FS board that “a process required to be followed, similar to corporate insolvency resolution process, for the purpose of proper resolution of IL&FS and its subsidiaries”. In February, the appellate tribunal appointed Justice (retired) Jain to oversee the process.