₹4 billion on these accounts which will be auctioned to ARCs.
Mumbai-based State Bank of India is reportedly looking to recover nearly ₹4.06 billion (US$54.35 million) on the accounts of Patna Bakthiyarpur Tollway, Steelco Gujarat Ltd, GOL Offshore Ltd, Andhra Ferro Alloys Ltd, Guru Ashish Taxfab and Genix Automations Pvt Ltd. Their outstanding balances are ₹2.3 billion, ₹683.1 million, ₹507.5 million, ₹267.3 million, ₹170.7 million and ₹122.3 million, respectively. “In terms of the bank’s policy on sale of financial assets, in line with the regulatory guidelines, we place the following accounts for sale to ARCs/banks/ NBFCs/FIs, on the terms and conditions indicated there against,” the firm said in the sale notices for these assets.
The first e-auctions will take place for Genix Automations and Guru Ashish Texfab on 15 February, followed by GOL Offshore on 21 February. The auction for Patna Bakthiyarpur is scheduled for 23 February and for Andhra Ferro Alloys and Steelco Gujarat on 4 March. The state bank revealed that the auction of all accounts, except for GOL Offshore Ltd, will be held under the Swiss Challenge Method. This means it will be based on an existing offer in hand, who will have the right to match the highest bid.
Under this method, a proposal may be made by an interested bidder for the asset, following which the seller will publish the details to allow others to match it. After the receipt of bids, the original contractor is given the opportunity to match the best bid. ARCs, banks, non-banking financial companies (NBFCs) and other financial institutions, which are interested in making a bid may conduct due diligence of the assets with immediate effect by submitting an expression of interest and entering into non-disclosure agreements with the bank.
