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The State Bank of India (SBI), India’s largest lender, is set to auction non-performing assets (NPAs) worth ₹2,732.5 crore linked to Odisha-based ARSS Infrastructure Projects Ltd. This sale will be conducted via a Swiss challenge auction process, and SBI has invited expressions of interest (EoIs) from potential buyers willing to submit counter bids on a full cash basis.
SBI holds primary securities: ₹230.46 crore, collateral securities: ₹31.58 crore and third-party guarantees: ₹23.28 crore. The reserve price for this asset is set at ₹125 crore. The bank already has an anchor bid in hand, which will serve as the base bid for the process.
Counter Bid Submission: Interested parties must submit bids with a minimum 5% markup over the base bid.
Winning Bidder Selection:
If no counter bids meet the markup requirement, the base bid will win, pending bank approval.
If counter bids exceed the base bid, the highest counter bid becomes the new challenger bid.
The process continues until the highest bid is finalized.
Matching Opportunity: The original base bidder has the right to match or exceed the highest counter bid before a winner is declared.
ARSS Infrastructure Projects, a leading construction company in Odisha, is undergoing corporate insolvency resolution under the National Company Law Tribunal (NCLT), as per an order dated November 30, 2021.
SBI is also selling NPAs worth ₹163 crore linked to Anjanay Rice Mill. The reserve price for this asset is ₹7.10 crore, and the e-auction is scheduled for December 31, 2024.
These asset sales are part of SBI’s ongoing efforts to clean up its balance sheet and recover funds tied up in non-performing assets.
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