IL&FS group has put its two subsidiaries, IL&FS Investment Managers Limited (IIML) and IL&FS Securities Services (ISSL), on the block. The debt-laden group is looking to sell its entire 50.42% stake in IIML, a private equity fund management firm having a market capitalisation of nearly Rs 400 crore. The group has also revived talks to sell its securities services subsidiary ISSL.
“Asset monetisation is an integral and important part of the approved IL&FS group resolution framework. Sale of stake in these assets is a step towards implementing that framework,” said the spokesperson of IL&FS group.
In 1996, the IL&FS Group had acquired IIML, leading to its role as an asset manager for infrastructure, real estate and private equity funds. Total financial assets of the company stood at `251 crore at the end of the previous fiscal.
The move to sell ISSL, which is a Sebi-registered custodian, comes five years after the group tried to exit the securities business in 2018. IL&FS had signed a deal with IndusInd Bank to sell ISSL to the private bank for nearly Rs 400 crore. However, IndusInd Bank had called off the deal to acquire ISSL citing non-fulfilment of conditions.
ISSL is a recognised custodian in portfolio management services (PMS) and manages assets of over Rs 9,000 crore with more than 1,700 clients.
The company is among very few depository participants having both the NSDL & CDSL registrations, and has a base of more than 90,000 accounts as of July-end, which presents a significant possibility for cross-selling additional products.
