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IL&FS completes stake sale in OTPC for Rs 1,227 cr

New Delhi, Jan 4 (IANS) The IL&FS Group has completed sale of its 26 per cent stake in ONGC Tripura Power Company (OTPC) to Gas Authority of India Limited (GAIL) at an aggregate valuation of Rs 1,227 crore.

According to the Group, with this transaction, IL&FS has resolved a debt of approximately Rs 3,656 crore, which formed part of the overall Group debt of around Rs 99,000 crore, as of October 2018.

The Group had held its 26 per cent stake in OTPC in two subsidiaries -- around 12 per cent by IL&FS Energy Development Company Ltd (IEDCL) and 14 per cent by IL&FS Financial Services Ltd (IFIN).

"The Group has duly received an aggregate sum of Rs 319 crore for its 26 per cent stake from GAIL in the two companies, thereby closing this stake sale transaction," the IL&FS Group said in a statement.

"The initial shareholding in the company comprised ONGC 50 per cent, India Infrastructure Fund II 23.5 per cent and the Government of Tripura holding 0.5 per cent stake," it added.

Post this transaction, GAIL will now be a 26 per cent shareholder in OTPC along with ONGC at 50 per cent, Indian Infrastructure Fund II at 23.5 per cent and Government of Tripura at 0.5 per cent.

The new IL&FS board, in its latest update, 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.