State-Run NARCL Gets NCLT Nod To Acquire SREI Group Entities

India’s National Company Law Tribunal (NCLT) approved National Asset Reconstruction Company Ltd.’s (NARCL) resolution plan for the SREI Group entities.

The Kolkata bench of the NCLT pronounced an oral order today, approving the resolution plan submitted by the government-owned NARCL for SREI Infrastructure Finance Ltd. and its subsidiary SREI Equipment Finance Ltd., according to a stock exchange announcement.

[Click here to see NCLT order]

The non-banking financial companies have been undergoing a consolidated corporate insolvency resolution process since October 2021.

NARCL, which was formed in July 2021 with an aim to acquire bad loans from Indian banks, will now seek the nod from the Reserve Bank of India to acquire the companies.

NARCL had offered 5,555 crore rupees ($671 million) on a net present value (NPV) basis for the assets of SREI entities, beating the offer of Authum Investment & Infrastructure Ltd. and the Varde Partners-Arena Investors consortium.

Authum Investment offered 5,526 crore rupees and Varde-Arena consortium initially offered 4,682 crore rupees, but later improved its bid to 4,832 crore rupees.

SREI entities’ administrator admitted 32,750 crore rupees in claims from verified creditors.

(Note: $1 = 82.7835 Indian rupees)

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