IL&FS’ car sale shows cash-strapped group never compromised on luxury
14/12/2018
Mumbai: The executives of the debt-riddled Infrastructure Leasing and Financial Services (IL&FS) group till recently drove in luxury, if registration dates of the cars being sold are an indication.
Of the 34 premium luxury cars put on sale, nine were registered between 2017 and 2018. As recently as June 2018, the group registered BMW X1 S DRIVE 20 D. The premium SUV which could cost around Rs 3.8 million was registered in the name of IL&FS Rail.
The premium collection includes Mercedes Benz GLS an S-Class SUV which costs anywhere between Rs 8.2 million to Rs 15.6 million, depending upon the variant. The car was registered in July 2017 with IL&FS Transportation Networks as its owner. The group is now looking to off-load this priced possession with the base price pegged at Rs 5.7 million.
The impressive line-up of cars that are being put on sale includes five BMWs, four Mercedes-Benz, two Jaguars, one Lexus and one Landrover.
The remaining cars are from manufacturers such as Skoda, Audi, Toyota, Honda and Volvo.
Those looking to pick up the luxury offerings of IL&FS would have to shell out anywhere between Rs 381,000 to Rs 5.7 million the broad range of base prices being quoted. The group could at least fetch Rs 87 million from this sale if there are buyers willing to match the base prices at which the bidding can start.
According to the sources, the group has put 20 of its cars for inspection near its BKC office in Mumbai, while the remaining will be auctioned off from Gurugram.
The new board of IL&FS chaired by Uday Kotak is looking at cost-cutting measures to improve the liquidity situation of the group. Besides monetising some of the group’s assets, the board is also looking at ways it can cut its wage bill and bring down the manpower.
The government in October appointed the new board to check the contagion risk from the IL&FS default.
According to estimates, the group’s debt pile stands at Rs 900 billion; with most financial intermediaries banks, insurers and mutual funds exposed directly or indirectly.
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