Infrastructure Leasing & Financial Services (IL&FS) has achieved a significant milestone in its debt resolution journey with the successful listing of the Roadstar Infra Investment Trust (RIIT) units on the National Stock Exchange (NSE).
The listing ceremony was graced by Mr. Nand Kishore, Chairman and Managing Director of IL&FS Group, Dr. J N Singh, Chairman, and Mr. Danny Samuel, Chief Executive Officer of Roadstar Investment Managers Limited (RIML), along with several members of the new Board.
The listing of RIIT, comprising six underlying road assets valued at Rs 8,592 crore, underscores IL&FS Group’s ability to utilize diverse financial instruments for debt resolution effectively. These road assets, totaling 685.16 kilometers, are spread across six states in India, including projects like Moradabad Bareilly Expressway Limited (MBEL) and Pune Sholapur Road Development Company Limited (PSRDCL).
This achievement follows an interim distribution of Rs 5,000 crore to creditors, marking a substantial breakthrough in IL&FS’s debt resolution efforts. The distribution included Rs 3,500 crore in InvIT units and Rs 1,500 crore in cash, demonstrating the Group’s commitment to maximizing returns for its stakeholders.
Mr. Nand Kishore, Chairman and Managing Director of IL&FS Group, remarked, “The successful listing of IL&FS InvIT represents an innovative resolution option chosen by the new Board, ensuring efficient resolution while unlocking growth potential for our road assets.”
Mr. Danny Samuel, CEO of Roadstar Investment Managers Limited, stated, “The listing provides a platform for risk-averse investors in the alternative investment sector, enhancing the current portfolio and valuation of the Trust through professional management and strategic growth initiatives.”
After facing challenges in individual road asset monetisation efforts, the IL&FS Board opted for the InvIT route in 2019. Roadstar Infra Investment Trust was subsequently established, with Roadstar Investment Managers Limited appointed as its investment manager and Elsamex Maintenance Services Limited as the project manager.
With this significant listing, IL&FS has discharged a total debt of Rs 43,000 crore, representing 70 percent of its overall debt resolution target of Rs 61,000 crore. The Trust is committed to distributing at least 90 percent of its net distributable cash flows to unit holders annually.
IL&FS continues to demonstrate its dedication to resolving one of India’s largest financial crises through innovative and strategic financial solutions.
