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IL&FS sells 50 pc stake in GIFT City to Gujarat govt for Rs 33 cr

Jun 8, 2020, 13:10 IST
PTI
Mumbai, Jun 8 () Debt-laden IL&FS on Monday said it has completed the sale of its 50 per cent stake in Gujarat International Finance Tec-City (GIFT City) to the Gujarat government for Rs 32.71 crore.

The stake sale will help the group reduce its debt by Rs 1,230 crore. The group's current outstanding debt is around Rs 94,000 crore.

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"IL&FS has duly received Rs 32.71 crore as equity value for shares as a sale consideration," a release said.

The stake sale was approved by the National Company Law Tribunal (NCLT) last month.

The stake in GIFT City was bought by Gujarat Urban Development Company Ltd (GUDCL), on behalf of the Gujarat government.

GUDCL, as the joint venture partner and the owner of the balance 50 per cent stake in Gujarat International Finance Tec-City Company Ltd (GIFTCL), offered to purchase IL&FS's share in GIFTCL through exercise of a contemplated right of first refusal under the joint venture agreement.

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As per the resolution framework for IL&FS Group, the offer by GUDCL was placed before the committee of creditors (CoC) of the group for its approval, the release said.

Almost 80.09 per cent (by value) of the CoC voted in favour of the proposal, it said.

GIFTCL is engaged in the business of real estate development and is developing an international financial services city in the Ahmedabad-Gandhinagar region, including design, development, financing, operation and maintenance of the same. HV ANU ANU

(This story has not been edited by www.businessinsider.in and is auto–generated from a syndicated feed we subscribe to.)
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