In a major development, cash-strapped IL&FS Group said it has completed sale of its 73.69 pc stake in education business, held under Schoolnet India Ltd (SIL), to Falafal Technologies.

Falafal Technologies Pvt Ltd (FTPL) has paid Rs 7.37 crore as equity value for shares of SIL held by IL&FS Ltd and IL&FS Employee Welfare Trust.

FTPL has also agreed to a deferred consideration of Rs 6.29 crore payable within 18 months from closure.

IL&FS Group 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.”

The sale was completed pursuant to the approval granted by the National Company Law Tribunal  (NCLT), Principal Bench, vide an order dated August 31, 2020, the Group said.

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The stake sale in SIL will reduce operating cost for IL&FS Group by nearly 19 per cent, it said.

SIL holds 80 per cent stake in IL&FS Skill Development Corporation (ISDC) and also has two wholly-owned subsidiaries – IL&FS Cluster Development Initiative (ICDI) and Skill Training Assessment Management Partners (STAMP).

The Group said as part of the sale transaction, the businesses of ICDI and STAMP have also been transferred to SIL through a slump sale for a consideration of Re 1 for each company.