NARCL Places ₹631 Cr Bid for BGR Energy's Stressed Debt

State-owned National Asset Reconstruction Ltd. (NARCL) has placed an anchor bid of ₹630.67 crore for the stressed debt of Chennai-headquartered BGR Energy Systems, which amounts to over ₹3,500 crore, from a consortium of lenders through Swiss challenge auction, said a source aware of the development.

- SUBRATA PANDA

NARCL has placed the bid on a 15:85 cash:security receipt basis, in which it will pay 15 per cent of the total consideration offered upfront, and the balance 85 per cent through issuance of security receipts. The anchor bid translates into a recovery of 18 per cent for the lenders.

A consortium of lenders, including State Bank of India (SBI), Canara Bank, IDBI Bank, Punjab National Bank, Indian Bank, Bank of India, Union Bank of India, Central Bank of India, and Bank of Baroda have a fund-based outstanding of ₹2,920.49 crore and non-fund based outstanding of ₹591.84 crore as on July 31, aggregating to ₹3,512.33 crore towards the company.