Canara Bank Consortium Opens Bidding for Rs 1,226 Crore Loan Sale in Mumbai Metro One Project

Canara Bank Consortium Opens Bidding for Rs 1,226 Crore Loan Sale in Mumbai Metro One Project

A consortium led by Canara Bank is set to auction Rs 1,226.13 crore in non-performing loans from Mumbai Metro One Private Limited (MMOPL), offering interested bidders a Swiss challenge auction scheduled for November 28. MMOPL, a special purpose vehicle jointly owned by Reliance Infrastructure and the Mumbai Metropolitan Region Development Authority (MMRDA), is the developer and operator of the Versova-Andheri-Ghatkopar metro corridor in Mumbai, a 12-kilometer elevated rail system and India’s first metro project under a public-private partnership.

The lenders, including State Bank of India, Indian Bank, Bank of Maharashtra, and IDBI Bank, have set a reserve price of Rs 1,063 crore, following an anchor bid that represents an 86% recovery rate. Any counterbids in the auction must be at least 5% higher than this reserve and should be made on a full-cash basis. The auction terms allow the initial anchor bidder an opportunity to match any higher counterbids. IDBI Capital Markets and Securities is advising the consortium on the sale process.

Expressions of interest are due by November 6, with due diligence access provided to interested parties until November 25. In case no counterbids are submitted on auction day, the anchor bidder will automatically be awarded the bid, pending final lender approvals. This loan sale excludes a term loan component financed by India Infrastructure Finance Company (UK) as an external commercial borrowing.