M&A

M&A

CFM ARC gets PNB’s Gammon India debt of Rs.514-Cr at 73% haircut

Economic TImes  

CFM Asset Reconstruction Company has won the bid to acquire the INR 514 crore loan that Punjab National Bank had extended to Gammon India.No other bidders submitted offers that could challenge or beat CFM's anchor all-cash offer of INR 140 crore.The development gives CFM control over about 49% of the INR 3,800-crore legacy non-performing asset, which it aims to acquire primarily for its real estate assets.Gammon India is an engineering, procurement and construction (EPC) company. Earlier, the bad loan aggregator had taken over Gammon's loans from IDBI Bank (18% of the debt) and Canara Bank (16% of the debt).

Between Nov 2004 and Jun 2011, Gammon India had attracted about USD 68 M from ChrysCapital.For FY25, Gammon India had reported about INR 21 Cr in Operating Income and about INR 1,078 Cr in Net Loss.