IL&FS invites EoI to sell its 26% stake in ONGC Tripura Power Company

NEW DELHI: Moving ahead with its asset monetisation process IL&FS has invited expressions of interest (EoI) to divest the 26 per cent stake the crisis-hit company holds through IFIN and IEDCL.

IL&FS invites Expressions of Interest for acquisition of 26% of the issued and outstanding shares of OTPC owned by IFIN and IEDCL. Through IEDCL, IL&FS holds 12.03 per cent and through IFIN, the group holds 13.97 per cent.

The other shareholders of OTPC are state-run ONGC, with 50 per cent stake, IndiaInfrastructure Fund-II with 23.5 per cent, managed by Global Infrastructure Partners and the Government of Tripura holding 0.5 per cent stake.

ONGC Tripura Power Company (OTPC) operates a fully operational natural gas based 726.6 MW power plant located in Palatana, Tripura, supplying power to the energy deficit region of north east India. In addition to the benefit of availability of local gas wells for drawing sufficient gas, OTPC also has a load-center advantage, with access to the energy deficit north-eastern region of India as well as Bangladesh.

Consummation of any transaction pursuant to the process initiated by this EOI will be subject to necessary approvals, including, the approval of the Board and requisite corporate approvals of other relevant group companies, if applicable. Further, approvals required under applicable law or from statutory authorities under the overall supervision of Justice D.K. Jain (Retd.), and approval of the NCLT would also be required.

The Board has engaged Arpwood Capital Private Limited and JM Financial Limited to assist in the Potential Transaction.

In terms of eligibility for bidding, corporate bodies should have a minimum net worth of Rs 150 crore as per the audited balance sheet as of March 31, 2019 or later.

On the other hand investment funds, including private equity funds should have minimum assets under management in India of Rs 600 crores as of March 31, 2019 or later, or committed funds available for investment or deployment in companies incorporated in India of at least Rs 600 crores only, as of March 31, 2019 or later.

The EoIs have to be submitted by 5 pm on June 8, 2020. (IANS)