IL&FS Transportation Networks Limited — Important, 21-03-2025: Updates

IL&FS Transportation Networks Limited has executed a Restated Share Purchase Agreement with Cube Highways and Infrastructure II Pte. Ltd. for the sale of its entire equity shareholding in Chenani Nashri Tunnelway Limited (CNTL), a wholly owned subsidiary. This transaction is valued at an enterprise value of Rs. 5,300 Crore, with an additional consideration accruing of Rs. 21.50 lakhs for each day past March 31, 2024, until the closing date.

In FY 2017-18, CNTL contributed Rs. 404.40 Crore, accounting for 4.14% of the company's consolidated revenue of Rs. 9,778.92 Crore. The expected completion date for this sale is April 30, 2025. The buyer, Cube Highways, is not a related party, ensuring that the deal adheres to arm's length principles. This strategic move could strengthen IL&FS's financial positioning, and investors should watch closely as developments unfold.