Infrastructure Leasing & Financial Services: A Complex Web of Ownership and Management

Infrastructure Leasing & Financial Services is a company that operates in a complex web of ownership and management. Its parent company, IL&FS, has a significant presence in India's infrastructure sector.

IL&FS has a diverse portfolio of companies, with interests in sectors such as transportation, energy, and urban infrastructure. This diversification has allowed the company to spread its risks and invest in a wide range of projects.

IL&FS has a significant presence in India's infrastructure sector, with a portfolio of over 250 companies. This includes companies that operate toll roads, bridges, and other infrastructure projects.

The company's complex ownership structure includes several subsidiaries and joint ventures, which can make it difficult to understand who ultimately owns and controls the company.

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Infrastructure Leasing & Financial Services (IL&FS) has a strong financial performance, with a significant presence in the infrastructure finance space.

IL&FS has a diversified portfolio of infrastructure assets, including roads, bridges, and power plants, which generates substantial revenue.

The company's net worth stood at ₹15,000 crore in 2019, a testament to its financial stability.

IL&FS has a large network of over 230 subsidiaries and associates, which enables it to tap into various business opportunities and expand its reach.

The company's revenue from operations grew by 10% year-on-year to ₹3,434 crore in 2019-20, indicating a steady increase in its financial performance.

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IL&FS Investment Services has a diverse group of shareholders, with LIC holding the largest stake at 25% as of March 2018.

The company's largest shareholders include LIC, ORIX Corporation, IL&FS Employees welfare trust, Abu Dhabi investment authority, State Bank of India, HDFC Ltd, and Central bank of India.

In July, former chairman Ravi Parthasarthy stepped down due to health reasons and was replaced by LIC's Hemant Bhargava as non-executive chairman, indicating a shift in power dynamics among shareholders.

IL&FS has a complex structure with 256 group companies as of 2018, including subsidiaries, joint ventures, and associate entities.

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IL&FS has a vast network of group companies, with 256 entities as of 2018. This includes subsidiaries, joint ventures, and associate entities.

Some of these companies are directly owned by IL&FS, while others are owned through investment vehicles of various governments. The company's complex structure makes it difficult to track ownership and accountability.

IL&FS has 23 direct subsidiaries, 141 indirect subsidiaries, 6 joint ventures, and 4 associate companies. Each of these entities is further subdivided into additional legal entities, with much cross-ownership.

Here are some examples of IL&FS group companies:

IL&FS also has companies focused on financial services, such as IL&FS Financial Services Limited and IL&FS Investment Managers Limited. These companies provide investment banking and domestic private equity fund management services, respectively.

As of March 2018, the ownership of IL&FS Investment services was quite diverse.

LIC held a significant 25% stake in the company.

ORIX Corporation, a part of Mitsubishi Keiritsu, had a 23% share.

IL&FS Employees welfare trust owned 12%, while Abu Dhabi investment authority also held a 12% stake.

State Bank of India and HDFC Ltd each had a 12% and 9% share respectively.

Central bank of India rounded out the top shareholders with a 7% stake.

Here is a breakdown of the largest shareholders at the time:

Ravi Parthasarthy, the former chairman of IL&FS, stepped down in July citing health reasons.

Hemant Bhargava, from LIC, was appointed as non-executive chairman, a move that has led to concerns about the pressure building up across some of IL&FS' subsidiaries.

Investors may be looking at a review of the operations, and by putting its own person in-charge, LIC is flexing its muscles as the organisation's largest shareholder.

The scale and complexity of operations has become tougher and tougher to manage, and it may be time to take a re-look at the group.

LIC held 25.34 percent in IL&FS as of March 31, 2018, making it the largest shareholder.

IL&FS' largest shareholders are expected to step in with the required support for the group's rights issues.

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Infrastructure Leasing & Financial Services (IL&FS) operates a diverse portfolio of businesses, including infrastructure development, finance, and asset management. This breadth of operations allows the company to offer a wide range of services to its clients.

IL&FS has a significant presence in the Indian infrastructure sector, with a strong focus on developing and managing infrastructure assets such as roads, bridges, and power plants. The company has a robust project development and financing framework that enables it to execute large-scale infrastructure projects.

IL&FS has a strong financial services arm that provides a range of financial products and services to its clients, including project financing, asset management, and fund management. The company has a diverse portfolio of assets under management, with a focus on infrastructure and real estate assets.

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IL&FS has a diverse portfolio of projects across various sectors, including Transportation, Power, Ports, and Urban Infrastructure.

The company's work on the Dr. Syama Prasad Mookerjee Tunnel is a notable example, with the 9.28 km long tunnel reducing travel time between Jammu and Srinagar by two hours.

Built on a budget of ₹3,720 crore, the tunnel features a main tunnel 13 metres in diameter and a parallel escape tunnel 6 metres in diameter, connected by 29 cross passages.

IL&FS also invested in the Reliance Industries' special economic zone project in Haryana, picking up a significant minority stake in 2009.

IL&FS took over Maytas Infra Ltd. in 2011 and renamed it to IL&FS Engineering and Construction Company Limited.

The company's investments in its own subsidiaries and the equity market totalled nearly ₹10,000 crores as of September 2018.

IL&FS operates as a RBI-registered 'Core Investment Company', which means its own operations are limited to investments in other group companies.

This complex web of investments is made up of 23 direct subsidiaries, 141 indirect subsidiaries, 6 joint ventures, and 4 associate companies.

The top five exposures of IL&FS accounted for about 67 percent of its lending and investment book, and these include:

IL&FS has essentially followed a 'conceive, develop and sell' model, but has taken longer than expected to monetize some of its projects in recent years.

IL&FS has made significant progress in discharging its debt, with a total of Rs 45,000 crore discharged as of March 21, 2025, and an overall group resolution target of Rs 61,000 crore maintained.

The group has resolved nearly 90% of its debt resolution target, with Rs 55,000 crore resolved as of September 30, 2024.

IL&FS has utilized various methods to discharge its debt, including monetization, transfer to InvIT, debt servicing, and interim distribution.

In addition to debt resolution, IL&FS has also sold non-core assets to reduce its debt burden, such as its stake in GIFT City for 32 crore equity value in June 2020.

IL&FS sold its headquarters at Bandra Kurla Complex, Mumbai to Brookfields Asset Management for 1,080 crore in March 2022.

Out of the 302 entities to be resolved, 188 entities have been resolved through monetization, transfer to InvIT, and liquidation, leaving 114 entities to be resolved.

IL&FS has a few entities that are regularly servicing debt of around Rs 3,000 crore, in addition to the entities that are pending resolution.

The task of distributing available cash and units, as well as closing pending transactions approved by Courts, remains to be accomplished.

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