IL&FS On Its Way To A ‘Real’ Recovery? Debt-Laden NBFC’s Land Assets Put Up For SaleIL&FS headquarters at the Bandra Kurla complex in Mumbai (Wikipedia/IL&FS)

IL&FS, a financially stressed non-banking financial company (NBFC), has invited bids to sell its real estate assets to raise funds and trim its massive debt, reports The Tribune.

The infrastructure-lending company major has put up six of its properties on the block, with five properties in Mumbai, including a fourteen-storey commercial tower, and one commercial building in Kolkata.

“Today is a market where there are value purchasers. Everything available at the distressed value will certainly attract buyers. So, at the right and fair pricing, these properties will certainly find takers. And for a good quality commercial office building, there are always large investors who are chasing for it,” said Pankaj Kapoor, managing director of Liases Foras, to Mint.

IL&FS, one of India’s top NBFCs that lent heavily to big infrastructure projects, defaulted on its loan repayments in September 2018. This default triggered a market-wide liquidity crisis in the Indian financial system. The company has an accumulated debt of Rs 91,000 crore.

Following the takeover, the government moved swiftly and replaced the company’s board with its nominees, including Uday Kotak, the government's banking crisis manager.

Unlike commercial banks, NBFCs don’t accept deposits or issue cheque books to its customers. However, they undertake lending operations.

Also Read: IL&FS Rescue: A Direct, But Temporary, Government Takeover May Be Less Expensive

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber