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Edelweiss ARC wins auction for IOB's Rs.594-Cr education loan portfolio

Economic Times  

Edelweiss Asset Reconstruction Company won the distressed education loan portfolio of Indian Overseas Bank (IOB) at a 60% discount at an auction last week. Its INR 237.5 crore offer for the education loan portfolio of INR 594 crore triggered a Swiss auction held on January 6 by the bank. Since no other bidder made a counteroffer, IOB declared Edelweiss ARC the successful bidder. The portfolio had 21,125 education loans that were auctioned under the 20:80 structure. Here 20% of the consideration amount would be paid upfront and for the remaining amount, the ARC would issue security receipts that would be redeemed as and when they recover the overdue.