IL&FS Financial Services will sell 62 NPA accounts worth Rs 4,300 cr

IL&FS Financial Services (IFIN) has put up for sale its portfolio of non-performing assets (NPA) of approximately Rs 4,300 crore as part of a plan to reduce the group’s overall debt.

The sale of NPA would take place within the framework of the Swiss Challenge, the new board of directors having already received a firm offer.

Under this auction method, the seller who has already received a bid, publishes the bid and invites third parties to match or improve it. The process also allows the entity that submitted the first offer to match or better the best offer from the Swiss challenge process.

The sale of the NPA book by IFIN includes 62 accounts with a total principal outstanding of Rs 4,297 crore. Offers have been solicited from eligible candidates for the purchase of the entire sales portfolio comprising all of the 62 accounts.

The public tender process was launched on Monday and the sale would be concluded on the basis of a cash consideration. The deadline for submitting offers is October 19, 2021.

IFIN has assets under management of approximately Rs 18,000 crore involving external and internal loans and investments.

Selling loans to outside companies is part of the overall debt resolution process.

IFIN is a wholly owned subsidiary of IL & FS and is registered with the Reserve Bank of India as a non-deposit systemically important non-bank finance company.

The IL&FS group had a total outstanding amount of over Rs 90,000 crore. The new team addresses some of these issues through an asset selling strategy and combining the resources of other entities.

Posted on: Monday, September 27, 2021, 2:05 p.m. IST

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