NARCL highest bidder in Srei resolution

Kolkata: The government-backed National Asset Reconstruction Company Ltd (NARCL) has taken lead in taking over two stressed entities of the Srei Group as it submitted the highest net present value bid of Rs5,555 crore among bidders, an official said here on Wednesday.

NARCL's net present value bid, submitted in the 10-hour-long challenge mechanism conducted by the committee of creditors (CoC) on Tuesday, constitutes Rs3,200 crore in cash, a Rs1,000-crore jump from the previous plans offered, he said.

Although NARCL has a clear advantage for taking control of Srei Infrastructure Finance and Srei Equipment Finance, Authum Investment and Infrastructure, another bidder in the insolvency resolution process for the two stressed assets, "is not out of the game even though it was behind marginally in the final and fifth financial challenge bidding round due to terms and conditions and legal compliance", the official said. As a result of failing to raise bids above Rs4,800 crore, a consortium of Varde Partners and Arena Investors, another bidder in the resolution process, was "out of the race during the third round", he said.

"The challenge mechanism was successfully conducted and completed at midnight," Srei administrator Rajneesh Sharma told PTI without divulging details of the outcome of the process.