Phoenix invites bids from ARCs for sale of Rs 3,550 crore retail NPA

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

Phoenix ARC has invited expressions of interest (EoIs) from asset reconstruction companies (ARCs) for Rs 3,550 crore worth of retail non-performing assets (NPAs). This portfolio includes 420 secured retail accounts of Rs 186.9 crore and 560,805 unsecured retail accounts totalling Rs 3,363 crore.
 

According to a source familiar with the matter, four to five private sector ARCs have already shown preliminary interest in acquiring the assets. “However, it is too early to say if that will translate into binding bids,” the source added.
 

The deadline for EoIs ends on August 26 with interested parties getting till September 16 to conduct due diligence. Following this 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.
 

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, said the source quoted above.

Phoenix ARC has appointed BOB Capital Markets for assisting and advising on the sale of the NPAs