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IL&FS sells environment biz to EverEnviro, reduces debt Rs 1.2k cr
Bankrupt firm Infrastructure Leasing and Financial Services (IL&FS) has sold 100% stake of its environment business—IL&FS Environmental Infrastructure and Services Ltd (IEISL), to EverEnviro Resource Management, a wholly-owned subsidiary of Green Growth Equity Fund (GGEF).
IL&FS, as the promoter of IEISL, held 97.54% of equity shares. IL&FS Employee Welfare Trust held the remaining 2.46% share. The entire shareholding in IEISL held by IL&FS Group has been transferred to EverEnviro Resource Management.
The company said that the sale will reduce its overall debt by Rs 1,200 crore, which is the combined debt of entities under IL&FS’s environment businesses.
Additionally, around 4,000 employees, including consultants, have been transferred along with the businesses, thus effectively resulting in annual savings of around Rs 50 crore to the IL&FS Group.
IEISL subsidiaries—Swayam Swachatta Initiative Ltd (SSIL), Dakshin Dilli Swachh Initiative Ltd (DDSIL), Swayam Swachhata Initiative Ltd (SSIL), RDF Power Projects Lte (RDF), Kanak Resources Management Ltd (KRML), and East Delhi Waste Processing Company Ltd (EDWPCL) form a part of this transaction and have also been transferred to EverEnviro.
IEISL is an India-based integrated waste management company present across various segments, including inter alia construction and demolition, collection and transportation, and waste-to-energy. It currently manages over 8,400 tonnes of waste per day.
Its assets include an integrated waste-to-energy plant located at Ghazipur in Delhi, which has generated over 141 million units of green electricity by processing over 1.38 million tonnes of solid waste.
The sale of IL&FS environment business is a part of the company's strategy to resolve the overall debt of IL&FS Group as per the resolution plan approved by the National Company Law Tribunal (NCLT).
Also read: IL&FS sells 49% stake in Chinese road asset
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