Among four bids, JC Flowers ARC emerges as top bidder for Sathavahana Ispat at ₹410 crore

V Rishi Kumar Hyderabad | Updated on April 12, 2021

Lenders consortium considers Swiss Challenge to discover better price

The Lenders Consortium has chosen JC Flowers ARC as the highest bidder among four bids for the Hyderabad-based debt laden Sathavahana Ispat Ltd.

JC Flowers offered ₹410 crore, Maximus ARC Ltd ₹380 crore, CFM ARC ₹370 crore and Welspun ₹360 crore. The consortium evaluated the merits of all four bids and formally selected JC Flowers Asset Reconstruction Pvt Ltd as the H1 bidder.

As a next step. the lenders have proposed to now run a Swiss challenge process to optimize the offer, maximise the value and discover better price for the lenders.

Will Jindal Saw deal cheer Sathavahana?

The Hyderabad based company owes more than ₹1,000 crore debt to a consortium of four lending banks - led by Canara Bank. The debt was classified as Non Performing Asset (NPA) in the books of the lenders for more than three years. The company is engaged in the manufacturing Ductile Iron Pipes and Pig Iron and also has a metallurgical coke plant. It is listed on both BSE and NSE.

The lenders are trying to maximise the recovery by taking advantage of the recent surge in steel prices. Steel prices are currently at an all time high.

The consortium, comprised of Canara Bank, SBI, Union Bank and IFCI, called for a bid for sale of the of the company wherein it received four bids.

Sathavahana Ispat Ltd. - Board Meeting Intimation for Approving Unaudited Financial Results Of The Company For The Quarter Ended 30Th June, 2019 And For Other Matters

Published on April 12, 2021

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