M&A

M&A

NARCL to acquire Rs.1,000-Cr debt of Kay Bouvet Engg for Rs.130-Cr

Economic Times  

The National Asset Reconstruction Company (NARCL) is set to acquire INR 1,000 crore of the debt of specialised equipment manufacturer Kay Bouvet Engineering for INR 130 crore, which was the winning bid during a Swiss challenge auction. Banks, led by IDBI Bank, are moving forward with the transfer following the conclusion of due diligence for prospective bidders.The offer by NARCL represents a 13% recovery for the banks involved. The financing structure for this acquisition will consist of a blend of 15% cash and the remaining portion in security receipts, which are to be redeemed upon recovery.Kay Bouvet operates as a heavy engineering company. Its activities include the design, engineering, and manufacturing of specialised equipment for strategic sectors such as nuclear energy, power, defence, and space. The company has two manufacturing facilities in Maharashtra and Haryana.

For FY24, Kay Bouvet Engineering had reported about INR 302 Cr in Operating Income and about INR 4 Cr in PAT.