IL&FS Group said it has completed sale of its 52.26% stake in Terracis Technologies Ltd (TTL) to Falcon SG Holdings, (Philippines) Inc.
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.
With this stake sale, IL&FS said it has resolved approximately Rs 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,” IL&FS said in a statement.
Apart from some foreign banks and institutions, State Bank of India, Axis Bank and Indian Bank were key Indian lenders to the company.
The transaction would release corporate guarantees extended by various IL&FS Group entities and will also facilitate reduction of 5 entities within the IL&FS Group: TTL and its four subsidiaries – Land Registration Systems Incorporation (LARES), IL&FS Technologies Philippines Incorporation (ITPI), LIVIA India Ltd (LIL) and Bhopal e-Governance Ltd (BEGL).
With this transaction, over 200 employees within these companies would also now shift with the company to the new promoter.