SBI to shed ₹1.5K cr exposure to power equipment maker Regen Power

SBI to offload ₹1,550-crore stressed loan exposure in Regen Power to clean up its books; auction reserve price set at ₹240 crore

State Bank of India (SBI) is offloading stressed loan exposure of ₹1,556 crore of Regen Power Private Ltd (RPPL) — a South-based wind turbine generator maker — to clean up its balance sheet.

 

The principal outstanding for this account was around ₹580 crore at the end of March 2025.

 

The country’s largest lender is using the Swiss auction route for price discovery, based on an existing offer in hand, according to a notice put up on its website.

 

Swiss auction is a process where the auctioneer, which already has a bid in hand, calls for counter bids for price discovery.

 

It, however, did not disclose details of the existing offer at hand.  The reserve price for the auction is ₹240 crore with the deal being done on 100 per cent cash basis, SBI added.

 

Rating agency Icra has kept the long-term and short-term ratings of Regen Powertech in the ‘issuer not cooperating’ category and the rating is in “D” – default grade.

 

As part of its process and in accordance with its rating agreement with Regen Powertech, Icra has been trying to seek information from the entity to monitor its performance. 

 

But despite repeated requests, the entity’s management has remained non-cooperative, according to Icra’s latest update (May 2025) on the ailing power equipment manufacturer.

 

Regen Powertech was incorporated in December 2006 as a manufacturer of wind turbine generators and end-to-end service provider, including consulting, supply, erection, commissioning, and maintenance of these generators.

 

The company has been promoted by Madhusudan Khemka, R Sundaresh and M Mandava Prabhakar Rao through the holding company NSL Power Equipment Trading Pvt Ltd.

 

Private equity players like Indivision India Partners (IIP) and TVS Shriram Growth Fund have infused money into the company.

 

Regen has sourced product technology from Vensys Energy AG under a perpetual licence agreement for the manufacture and sale of wind turbine generators in five countries in South Asia.

 

According to SBI's annual report for 2024-25, cash recovery, upgrades and recoveries from technically written-off accounts stood at ₹17,213 Crore in FY25.

 

The sustained focus to contain risk, well supported by recovery in economic growth and private consumption, kept the asset quality robust in FY25.

 

SBI’s gross non-performing assets (gross NPAs) stood at 1.82 per cent, an improvement of 42 basis points (bps) year-on-year (Y-o-Y). And, net NPA stood at 0.47 per cent, an improvement of 10 bps, the lender said.