Phoenix ARC has invited expressions of interest (EoIs) from asset reconstruction companies (ARCs) for the sale of Rs 3,550 crore worth of retail non-performing assets (NPAs). This portfolio includes 420 secured retail accounts amounting to Rs 186.98 crore and 560,805 unsecured retail accounts totalling Rs 3,363.08 crore.
The private sector ARC has set a deadline of August 26 for interested entities to submit expressions of interest (EoIs) for the assets on offer.
According to a source familiar with the matter, 4 to 5 private sector ARCs have already shown preliminary interest in acquiring the assets. “However, it is too early to say if the preliminary interest shown by the ARCs will translate into binding bids,” the source added.
ARCs that submit expressions of interest (EoIs) will have until September 16 to conduct due diligence on the accounts, following which binding bids will be invited on a full cash basis on September 27, and the anchor bidder will be declared on October 7.
Phoenix ARC has not disclosed the reserve price for the assets in the auction document.
Following this, Phoenix ARC has also planned to conduct a Swiss challenge auction for the assets on offer, using the anchor bid as the base bid. Expressions of interest (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, said the source quoted above, adding that the amount it receives from the sale of this portfolio of retail accounts to another ARC will add to its recovery of these assets.
Phoenix ARC has appointed BOB Capital Markets to assist and advise on the sale of the NPAs.
First Published: Aug 20 2024 | 5:48 PM IST
