IL&FS sells green arm, cuts debt by ₹1,200 crore

BUSINESS


Transfer of staff to save ₹50 cr. a year

Debt-laden IL&FS said it has sold its entire stake in IL&FS Environmental Infrastructure & Services Ltd. (IEISL) and its subsidiaries to EverEnviro Resource Management Pvt. Ltd., reducing the overall debt by ₹1,200 crore.

“This sale will reduce IL&FS’ overall debt by ₹1,200 crore, which is the combined debt of entities under IL&FS’ environment businesses,” IL&FS Group said in a statement.

“In addition, around 4,000 employees, including consultants, have been transferred along with the businesses, thus effectively resulting in an annual savings of about ₹50 crore to the IL&FS Group,” it added.

IL&FS, the promoter shareholder of IEISL, held 97.54% of the equity of IEISL and IL&FS Employee Welfare Trust, the balance.

IEISL is a leading integrated waste management firm.

The sale forms a part of the new board’s strategy to resolve overall IL&FS Group debt as per the resolution plan approved by NCLAT.



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