SBI plans to sell Rs 2,732 crore worth of bad loans in ARSS Infrastructure Projects.
State Bank of India (SBI), India’s largest lender, plans to sell bad loans totaling Rs 2,732.5 crore owed to Odisha-based ARSS Infrastructure Projects Ltd. through a Swiss challenge auction. The bank has requested expressions of interest (EoIs) from businesses interested in filing counter-bids for the asset in full cash. SBI owns main securities totaling Rs 230.46 crore against the asset, collateral securities worth Rs 31.58 crore, and third-party guarantees at Rs 23.28 crore.
SBI has an offer for the asset that has been designated as the anchor bid or the base bid. The asset’s reserve price is fixed at Rs. 125 crore. Entities interested in submitting a challenger offer for the asset must include a minimum 5% markup above the base price.
If no counter bids surpass the minimum markup, the base bid will be declared the winner, subject to the bank’s final approval. If counter bids exceed the minimum markup, the highest counter bid becomes the challenger bid, and the process continues until one party is identified as the top bidder. In the event of a counterbid, the base bidder will have the ability to match or exceed the challenger bid. The winning bidder will be announced following this phase.
ARSS Infrastructure Projects is a renowned construction company in Odisha and one of the largest multi-disciplined construction firms in eastern India. The company is undertaking a corporate insolvency resolution process in line with an order issued by the National Company Law Tribunal’s Cuttack bench on November 30, 2021.
Separately, SBI is attempting to offload bad debts totaling Rs 163 crore relating to Anjanay Rice Mill and has requested expressions of interest from organizations interested in acquiring the asset. The asset’s reserve price has been fixed at Rs 7.10 crore. The e-auction for this asset will take place on December 31.
