2023-06-09 19:02:25
Among the interested parties submitting EOIs are Kotak Mahindra-sponsored Phoenix ARC, Assets Care & Reconstruction Enterprise (ACRE), Asset Reconstruction Co (India) (Arcil), Omkara Assets Reconstruction and Edelweiss Asset Reconstruction Co.
The deadline for submitting firm bids is June 18.
The loan portfolio consists of 10 real estate developers including Supertech, Nirmal Lifestyle, and Anil Ambani-owned Reliance Infrastructure’s special purpose vehicle SU Toll Road. The largest loan available for sale is attributed to Nirmal Lifestyle Developers, with an amount of ₹790 crore, followed by Nirmal Lifestyle Malls at ₹251 crore and Supertech at ₹515 crore.
L&T Finance is adopting a 15:85 structure, inviting EoIs from asset reconstruction companies, where L&T Finance’s maximum share in security receipts will be 85%. Interested bidders were required to show their interest by June 5.
Spokespersons of L&T Finance, ARCIL and Omkara did not respond to a request for comment. Edelweiss ARC and ACRE spokesperson confirmed that they have submitted EOIs.”Almost 10 ARCs have submitted EOIs but not all will submit firm bids for the assets,” said a CEO of one of the ARCs that submitted a bid. “L&T Finance has been trying to sell the Supertech loan for some time, but bidders have not shown interest in this loan.”
This move by L&T Finance is part of its ongoing efforts to reduce its wholesale book, encompassing both infrastructure finance and real estate finance. The company aims to focus more on retail loans and gradually exit wholesale lending. As of the end of FY23, retail loans accounted for 75% of L&T Finance’s total loan book, according to the firm’s statement on April 28.
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