 "Adani, JSW, investors eye Arshiya Ltd's assets amid insolvency process")
Several companies, including Adani Ports and Special Economic Zone, JSW Infrastructure, Horizon Industrial Parks, and Transindia Real Estate Ltd, have expressed interest in acquiring Arshiya Ltd, a publicly listed supply chain and logistics infrastructure firm currently undergoing corporate insolvency resolution, according to a report by The Economic Times.
The report quoted a source as saying that investors such as Authum Investment & Infrastructure Ltd, Dickey Alternative Investment Trust, and Finquest Financial Solutions Pvt Ltd have also shown interest in the company. Arshiya's total admitted liabilities exceed Rs 6,647 crore, with secured financial creditors owing around Rs 3,082 crore and unsecured creditors claiming approximately Rs 3,544 crore.
Headquartered in Mumbai, Arshiya specialises in integrated logistics infrastructure and supply chain solutions. The company develops, operates, and manages free trade and warehousing zones (FTWZs). As per its website, Arshiya is the only free zone developer with two operational FTWZs and is also the largest private container train operator with a pan-India presence. Additionally, it owns the sole private inland container depot featuring six rail loop lines.
The company's strategic asset locations have attracted a diverse group of bidders, a source said. It has a container yard capable of storing approximately 6,000 containers and seven warehouses with a total leasable space of around 1.16 million sq ft, the source added as cited by the news report.
Arshiya entered the insolvency resolution process in April last year, following a petition by Punjab National Bank over a Rs 193 crore default.
Sudip Mahapatra, a partner at law firm S&R Associates, highlighted why companies with substantial physical assets undergoing CIRP attract strong interest. Physical assets generally retain their value during the insolvency process. Additionally, through the IBC framework, debt levels can be restructured to make the business viable, he said as quoted by the report.
He further noted that companies with tangible assets often draw more bidders, particularly in a sector like logistics, which is seeing increased interest amid India's rising consumption trends.