SBI sells KSK Mahanadi Power loan account to Aditya Birla ARC for Rs 1,622 crore with a loss of 58%

KSK Mahanadi had a total loan debt of Rs 3815.04 crore to SBI. SBI sold the company for Rs 1622 crore to Aditya Birla ARC.

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A non-performing asset of the SBI Bank, KSK Mahanadi Power Company was sold off to Aditya Birla ARC the company informed in a regulatory filing on Thursday, following the lender’s stock traded in red on Friday.

KSK Mahanadi had a total loan debt of Rs 3815.04 crore to SBI. SBI sold the company for Rs 1622 crore to Aditya Birla ARC.

SBI was accepting a massive of almost 58% against the outstanding debt.

 SBI shares lost 2.6 % in intraday trade. The stock was trading 2.08 % from the previous close at Rs 521.35 on BSE at 3:10 pm.

The public sector bank had received a total of 15 expression of interest (EoIs), while just one bid was received from Aditya Birla ARC for an amount of Rs 1,544.08 crore in an auction at the end of May.

 In the auction process in June, SBI stated it received no competing bids and based on subsequent discussions, Aditya Birla ARC improved the offer to Rs 1,622 crore.

SBI said that the sale concluded on 12th August 2022 after the green of internal authorities. Before this SBI had temporarily stopped the e-auction of KSK Mahanadi in December last year citing administrative reasons.

During that time, KSK’s outstanding amount stood at a whopping Rs 4,100 crore. Established 13 years ago in 2009, KSK Mahanadi Power Company has been undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 for more than two years.