SBI looks to sell Rs 2,732 cr of bad loans in ARSS Infrastructure Projects

Bank has invited expressions of interest from entities interested in submitting counter bids for the asset on full cash basis

India's largest lender State Bank of India (SBI) is looking to sell bad loans worth Rs 2,732.5 crore related to Odisha-based ARSS Infrastructure Projects Ltd through a Swiss challenge auction and has invited expressions of interest (EoIs) from entities interested in submitting counter bids for the asset on a full cash basis.

 

SBI holds primary securities worth Rs 230.46 crore against the asset; collateral securities worth Rs 31.58 crore; and third-party guarantees of Rs 23.28 crore.

 

The bank has an offer in hand to sell the asset, which has been set as the anchor bid or the base bid. The reserve price for the asset is set at Rs 125 crore.

 

Entities interested in submitting a challenger bid for the asset have to put in a bid with a minimum mark-up between 5 per cent of the base bid.

 

If no counter bids exceed the minimum mark-up, the base bid will be considered the winning bid, subject to final approval by the bank. However, if counter bids surpass the minimum mark-up, the highest counter bid will become the challenger bid, and the process will continue until one party emerges as the highest bidder.

 

In the event of counter bids, the base bidder will be given the opportunity to either match or exceed the challenger bid. The winning bidder will then be declared after this step.

 

ARSS Infrastructure Projects is one of the leading construction companies in Odisha and one of the largest multi-disciplined construction companies in eastern India. The company is undergoing a corporate insolvency resolution process in terms of the order dated November 30, 2021 of the Cuttack Bench of National Company Law Tribunal.

 

Separately, SBI is also looking to sell bad loans of Rs 163 crore in Anjanay Rice Mill and has invited EoIs from entities interested in acquiring the asset. The reserve price for the asset has been set at Rs 7.10 crore. The e-auction for the asset will be held on December 31.