IL&FS to sell stake in education, wealth management arms; firm's financial services subsidiary defaults term loan of Rs 100 cr

Mumbai: Debt-laden Infrastructure Leasing & Financial Services (IL&FS) Group on Thursday said that it has initiated a process to sell its stake in education business and in the alternative investment management business.The Udak Kotak-led board of the crippled infra lender is selling the group's stake in IL&FS Education & Technology Services (IETS), along with other subsidiary businesses and IL&FS Investment Managers (IIML) along with all its associated fund management platforms, the company said in a statement.[caption id="attachment_5251861" align="alignleft" width="380"]

Representational image. Reuters.[/caption]The education business provides technology services to KG to XII class students through its proprietary digital content, devices, platforms and solutions, and offers job linked vocational skills programmes.IIML manages private equity funds, infra debt funds, among others and has assets under management of around Rs 13,340 crore.Earlier this week, the group had put its entire domestic road assets on sale and last month, it initiated a process to sell its stake in the renewal energy business.The group, which is sitting on a debt of over Rs 94,200 crore, had also announced plans to divest its stake in IL&FS Securities Services and ISSL Settlement & Transaction Services, for which it claimed to have received interest from over dozen entities, including banks, PE funds and other financial services firms.The board has appointed Arpwood Capital and JM Financial as financial and transaction advisors, along with Alvarez & Marsal as resolution consultants.Meanwhile, IL&FS Financial Services in an exchange filing said it has defaulted in payment of a term loan of Rs 100.52 crore, due Thursday. It has already defaulted on payments worth over Rs 5,000 crore since late August.