IL&FS Concludes Stake Sale in Education Biz; Cuts Consolidated Debt by Over Rs 650 Crore

Cash-strapped IL&FS Group on Wednesday said it has completed sale of its 73.69 per cent stake in education business, held under Schoolnet India Ltd, to Falafal Technologies. Falafal Technologies Pvt Ltd has paid Rs 7.37 crore as equity value for shares of SIL held by IL&FS Ltd and IL&FS Employee Welfare Trust, in addition to taking over SIL's fund based and non-fund based financial debt of nearly Rs 650 crore, a release said. The transaction provides positive equity value to IL&FS and resolves nearly Rs 650 crore of consolidated fund based and non-fund based financial debt, without any haircut to lenders, IL&FS Group said in the release. The shares of ICDI and STAMP have been transferred to IL&FS Ltd. SIL will continue to retain 80.01 per cent stake in ISDC which will become a step-down subsidiary of FTPL, the release said.