Phoenix ARC has received expressions of interest (EoIs) from 8-9 asset reconstruction companies (ARCs) to acquire its Rs 3,550 crore of retail non-performing assets (NPAs), comprising secured and unsecured portfolios as a single lot, that were put up for sale, said sources aware of the development.
The ARCs expressing interest in acquiring the retail NPAs include Asset Reconstruction Company (India) Ltd (ARCIL), which is backed by Avenue India Resurgence and State Bank of India; Omkara ARC; JM Financial ARC, supported by JM Financial; Encore ARC, backed by Encore Capital Group and ADV Partners; and International Asset Reconstruction Company (IARC), among others, according to sources.
Emails sent to Omkara ARC, JM Financial ARC, Encore ARC, and IARC did not elicit a response till press time. “At this time, we are not in a position to provide any comments on this matter,” said ARCIL in an emailed response.
Meanwhile, based on requests received from ARCs for extending the due diligence period as they needed more time, Phoenix ARC has decided to extend the timeline of the due diligence period from September 16 to September 24. Following the due diligence, binding bids will be invited on a full-cash basis on September 27, and the anchor bidder will be declared on October 7.
This portfolio put up for sale by Phoenix ARC includes 420 secured retail accounts of Rs 186.9 crore and 560,805 unsecured retail accounts totalling Rs 3,363 crore.
The private sector ARC has also planned a Swiss challenge auction for the assets on offer, using the anchor bid as the base bid. EoIs for the Swiss challenge auction will be invited by October 21, with due diligence permitted until November 4.
Binding bids will then be solicited on November 8, and the highest bidder will be announced on November 21. Afterward, the anchor bidder will have the opportunity to match the highest bid, after which the successful bidder will be finalised on November 25.
Phoenix ARC had bought this portfolio of retail loans from multiple banks and has already recovered close to Rs 1,000 crore from these NPA accounts. Phoenix ARC has appointed BOB Capital Markets to assist and advise on the sale of the NPAs.
First Published: Sep 17 2024 | 6:37 PM IST
