MUMBAI: IL&FS Transporation Networks (ITNL) will create a subsidiary to sponsor its proposed infrastructure investment trust (InvIT).
In a regulatory filing on Thursday, the cash-strapped IL&FS Group company also said that its board has given an in-principle approval to transfer the company's shareholding in nine SPVs (special purpose vehicle) to the trust.
"The board has approved the incorporation of a new subsidiary of the company that will act as the sponsor of the proposed infrastructure investment trust to be set up and registered in accordance with Securities and Exchanges Board of India Regulations," the filing said.
The development comes as ITNL plans to sell some of its road assets through the InvIT. InvITs are the institutions which enable investments into the infrastructure sector by pooling small amount of money from multitude of individual investors for directly investing in infrastructure.
IL&FS and its group companies are undergoing resolution through the National Company Law Appellate Tribunal (NCLAT) and investigations are also underway over corporate misgovernance and unauthorised movements of funds and non-re porting of stressed assets.