The National Asset Reconstruction Company Limited (NARCL) is understood to have offered an upfront cash payment of ₹2,100 crore and ₹3,500 crore payable in deferred instruments for acquiring Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) under the insolvency process.
It has further proposed up to ₹8,000 crore in uncommitted funds, on a ‘pay when able’ basis, which could be revised downward based on future recoveries from SREI’s loan assets, according to source.
The players
Arena-Varde Partners and Authum Investment are among the other players who have submitted final bids. Sources said Authum has offered an upfront cash component of ₹2,600 crore and a further ₹700 crore in secured non-convertible debentures. Additionally, Authum’s plan also proposes to pay the lenders 25 per cent of any upside on any future recoveries for the next five years.
The Varde-Arena consortium’s bid includes ₹2,800 crore in upfront cash, and around ₹3,600 crore in deferred instruments such as non-convertible and optionally convertible debentures. The plan also proposes an equity contribution of ₹1,400 crore and an estimated ₹6,000 crore in uncommitted funds, which would depend on future recoveries from SREI’s loan assets.