Interested parties submitting Expressions of Interest include Phoenix ARC, sponsored by Kotak Mahindra, Assets Care & Reconstruction Enterprise (ACRE), Asset Reconstruction Co (India) (Arcil), Omkara Assets Reconstruction and Edelweiss Asset Reconstruction Co.
The deadline for submitting firm offers is June 18.
The loan portfolio consists of 10 property developers, including Supertech, Nirmal Lifestyle and Reliance Infrastructure’s special purpose vehicle SU Toll Road, owned by Anil Ambani. The largest loan available for sale goes to Nirmal Lifestyle Developers at ₹790 crore, followed by Nirmal Lifestyle Malls at ₹251 crore and Supertech at ₹515 crore.
L&T Finance adopts a 15:85 structure, inviting EoIs from asset reconstruction companies, where L&T Finance’s maximum share of security revenue will be 85%. Interested bidders had to express their interest by June 5.
Spokespersons for L&T Finance, ARCIL and Omkara did not respond to a request for comment. The spokesperson for Edelweiss ARC and ACRE confirmed that they had submitted EOIs. “Nearly 10 ARCs have submitted EOIs, but not all of them will submit binding offers for the assets,” said the CEO of one of the ARCs that submitted an offer. “L&T Finance has been trying to sell the Supertech loan for some time, but bidders have shown no interest in this loan.”
This move by L&T Finance is part of its ongoing efforts to reduce its wholesale portfolio, encompassing both infrastructure finance and real estate finance. The company aims to focus more on retail lending and phase out wholesale lending. At the end of FY23, retail loans accounted for 75% of L&T Finance’s total loan portfolio, according to the company’s April 28 release.