The IL&FS Group has completed sale of its 52.26 per cent stake in Terracis Technologies Limited (TTL) to Falcon SG Holdings, (Philippines) Inc.
With this stake sale, IL&FS has resolved ₹1,275 crore of its Group debt and completely exited the technology business.
“This is an equity positive transaction wherein the entire debt has been taken over by the new promoter. Apart from some foreign banks and institutions, State Bank of India, Axis Bank and Indian Bank were key Indian lenders to the company,” IL&FS said in a statement.
“The transaction would release corporate guarantees extended by various IL&FS Group entities and will also facilitate reduction of five entities within the IL&FS Group: TTL and its four subsidiaries — Land Registration Systems Incorporation (LARES), IL&FS Technologies Philippines Incorporation (ITPI), LIVIA India Limited (LIL) and Bhopal e-Governance Limited (BEGL),” it added.
With this transaction, over 200 employees within these companies would also now shift with the company to the new promoter.
TTL has experience in providing information technology solutions for efficient citizen service delivery and smart governance, through its customised solutions.
Land Registration Systems Incorporation, Philippines, is a corporation constituted in the Philippines and engaged in executing country-wide build, own, operate-based land modernisation project, “Land Titling and Computerisation Project”, for the Government of Philippines. It is held 67 per cent by TTL.
IL&FS Technologies Philippines Incorporation is a corporation constituted in the Philippines and engaged in the business of providing managed services, systems integration and geospatial services.
LIVIA India Limited was engaged in the business of providing managed services enterprise resource planning implementation and support services to IL&FS group companies. It is now under voluntary liquidation.
Bhopal e-Governance Limited is a special purpose vehicle, engaged in the business of providing state-wide revenue management solutions for land on a public-private partnership ‘build own operate transfer’ model for the government of Madhya Pradesh.
The new Board, in its latest update, had announced that the IL&FS Group has resolved over ₹52,000 crore debt while maintaining its overall group debt resolution estimate at ₹61,000 crore.
TTL was formerly known as IL&FS Technologies Ltd and Falcon SG is a wholly-owned subsidiary Falcon Investments Pte Ltd, a part of Gateway Partners and Avenue Capital Group.