M&A
IDBI Bank sells Rs.6,151-Cr distressed portfolio to Omkara ARC
Omkara Asset Reconstruction Company (ARC) has emerged as the winning bidder to acquire non-performing assets (NPAs) worth INR 6,151.16 crore from the Stressed Asset Stabilisation Fund (SASF) of the erstwhile Industrial Development Bank of India (IDBI).SASF is a government-formed special purpose vehicle for acquiring and managing the assets of the erstwhile IDBI and has the mandate to recover its dues. The tenure of SASF shall come to an end by September 30, 2024.Both Omkara ARC and state-owned National Asset Reconstruction Company Ltd (NARCL) had bid the reserve price of INR 642 crore. Omkara ARC increased its offer to INR 652 crore, and won the bid. Of the 239 accounts up for sale, 81 included tangible securities and guarantees with a gross principal outstanding of INR 2,179.51 crore, while the remaining 158 accounts had guarantees and claims with a gross principal outstanding of INR 3,971.65 crore.EY was the process advisor for assisting with the proposed sale of the SASF’s NPA portfolio.
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