Phoenix ARC, a company backed by Kotak Mahindra Group, has put a significant portfolio of secured and unsecured loans up for sale. The company is inviting expressions of interest (EoIs) from potential buyers for loans amounting to over ₹3,550 crore. This portfolio includes a mix of non-performing assets (NPAs) that the company is looking to offload.
Details of the Loan Portfolio
The portfolio being offered by Phoenix ARC consists of 420 secured accounts, which collectively amount to ₹187 crore. Additionally, there are 5.60 lakh unsecured accounts, with a total value of ₹3,363 crore. These assets have not been performing as expected, prompting the company to seek buyers who are interested in acquiring them.
Timeline for Sale Process
Phoenix ARC has set a deadline of August 26 for interested entities to submit their expressions of interest. Following this, potential buyers will have until September 16 to conduct due diligence on the accounts included in the sale. Due diligence is a critical step where buyers can thoroughly evaluate the quality of the assets and assess any associated risks.
Bidding and Auction Process
Once the due diligence phase is complete, Phoenix ARC will invite binding bids from interested parties on September 27. Binding bids represent the final offers from buyers, indicating their firm commitment to purchase the assets at a specified price.
Swiss Auction to Determine Final Price
Phoenix ARC has not disclosed its price expectations for the portfolio sale. However, the company plans to hold a Swiss auction on October 21. In this type of auction, the highest bid is made public, and other bidders are given the opportunity to place higher offers, ensuring the assets are sold at the best possible price.
Advisory and Expected Conclusion
To facilitate the sale, Phoenix ARC is being advised by BOB Capital Markets, the investment banking and consultancy arm of Bank of Baroda. The entire sale process is expected to conclude by November 25, with the selection of a buyer, ensuring a swift and efficient transfer of the assets.
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