INSUBCONTINENT EXCLUSIVE:
Mumbai: SBI, Axis Bank and IndusInd Bank have emerged three key bidders for ILFS Securities Services (ISSL) and ISSL Settlement Transaction
The securities business, which is understood to be valued at around Rs 1,500 crore, was put on the block by the new board last month.
Of the
three bidders, SBI and Axis Bank are new entrants while IndusInd had earlier entered into a deal to acquire the two firms from ILFS group
before the board was scrapped and a new board was appointed by the government in October
The new board, headed by veteran banker Uday Kotak, had decided to revisit all the deals and had called for fresh bids.
A statement issued
dozen entities like banks, private equity firms and other financial services companies
According to sources, there has been improved interest from banks as they are no longer required to take specific approval from the central
bank for acquiring companies.
ILFS Securities provides depository services, loans against shares, securities lending and custodial lending
The company is 81.24 per cent owned by ILFS group with another 9 per cent held by ILFS Employee Welfare Trust, 4.75 per cent by Orix
Corporation and 5 per cent by Croupier Prive Mauritius
After the securities business the next round of assets to be sold by ILFS group will be its green energy businesses
In November, ILFS had sought bids for wind power-generating plants with capacity of 874MW as well as under-construction wind
power-generating plants with capacity of 104MW
There is also a separate business of relating to project development and implementation of solar-power generating plants and projects under
development of approximately 300MW capacity.
In a report on the way forward, the new board said that it is in the process of evaluating and
initiating a few more divestments (such as ILFS Education, ILFS Technologies, ONGC Tripura Power Company and ILFS Paradip Refinery Water
Limited) in the coming weeks.
