The IL&FS Group completed the sale of its 52.26 per cent stake in Terracis Technologies Ltd (TTL) to Falcon SG Holdings of the Philippines.
Terracis Technologies was formerly known as IL&FS Technologies Ltd, while Falcon SG is a wholly-owned subsidiary of Falcon Investments Pte, a part of Gateway Partners and Avenue Capital Group.
With this stake sale, the group has resolved around Rs 1,275 crore of its debt and also completely exited the technology business, the company said.
“This is an equity positive transaction wherein the entire debt has been taken over by the new promoter,” it said.
“The transaction would release corporate guarantees extended by various IL&FS group entities and will also facilitate the reduction of five entities within the IL&FS group,” it added.
These five entities are Terracis Technologies and its four subsidiaries — Land Registration Systems Incorporation (LARES), IL&FS Technologies Philippines Incorporation (ITPI), LIVIA India Ltd (LIL) and Bhopal e-Governance Ltd (BEGL).
Also, with this transaction, over 200 employees within these five companies would now shift to the new promoter.
“The new board, in its latest updates, had announced that the IL&FS group has resolved over Rs 52,000 crore debt while maintaining its overall group debt resolution estimate at Rs 61,000 crore. This transaction forms part of the overall IL&FS Group resolution estimate of Rs 61,000 crore,” the company added.