IL&FS completes transfer of Moradabad-Bareilly Expressway to its InvIT

NEW DELHI:The IL&FS group has completed the sale and transfer of its entire holding in Moradabad Bareilly Expressway Ltd. to its recently-formed infrastructure investment trust (InvIT) - Roadstar Infra Investment Trust.

With this, Moradabad Bareilly Expressway Ltd has become the first asset of Roadstar InvIT, promoted by IL&FS Transportation Networks Ltd.

This is the first of many road assets proposed to be acquired by the InvIT in different phases, the company said in a statement.

The final consideration for sale of shares was ₹576.77 crore and the adjusted final consideration for assignment of receivables was ₹14.26 crore, the company said.

The company has received the final consideration in the form of 5,91,04,536 units of ₹100 apiece issued by the InvIT and transferred the shares of Moradabad Bareilly Expressway to the account of Roadstar InvIT on 24 December.

Pursuant to the sale, Moradabad Bareilly Expressway Ltd has ceased to be the subsidiary of the company.

IL&FS InvIT will be the first vehicle for resolving debt owed to lenders of IL&FS Transportation Networks, and other group entities. It is part of the overall group resolution framework adopted by the new board of IL&FS.

IL&FS received approval for launching phase-I of its InvIT from the National Company Law Tribunal (NCLT) in late October.

In FY18, the total revenue of Moradabad Bareilly Expressway Ltd was ₹300.16 crore, which is 3.07% of the consolidated revenue of ₹9,778.92 crore of the company in that year. MBEL owns assets of around ₹3000 crore.

IL&FS had earlier said that it proposes to transfer six road projects, including the Barwa Adda Expressway Ltd, Baleshwar Kharagpur Expressway Ltd, Sikar Bikaner Highway Ltd, East Hyderabad Expressway Ltd, Moradabad Bareilly Expressway Ltd, and Jharkhand Road Projects Implementation Co. Ltd, to Roadstar Infra Investment Trust under its InvIT phase-I.

The special purpose vehicles (SPVs) of these six projects will be transferred to the InvIT at an aggregate valuation of ₹9,214 crore, determined by an independent valuer.