Phoenix ARC Attracts Interest from Multiple Asset Reconstruction Firms for ₹3,550 Crore NPA Sale

Phoenix ARC Attracts Interest from Multiple Asset Reconstruction Firms for ₹3,550 Crore NPA Sale

Phoenix Asset Reconstruction Company (ARC) has garnered expressions of interest from several asset reconstruction firms regarding the sale of its retail non-performing assets (NPAs), valued at ₹3,550 crore. This portfolio, which comprises both secured and unsecured loans, is being offered as a single lot.

Among the interested parties are prominent ARCs such as Asset Reconstruction Company (India) Ltd (ARCIL), supported by Avenue India Resurgence and the State Bank of India; Omkara ARC; JM Financial ARC; Encore ARC, backed by Encore Capital Group and ADV Partners; and International Asset Reconstruction Company (IARC), among others. However, inquiries directed to Omkara ARC, JM Financial ARC, Encore ARC, and IARC did not yield responses at the time of reporting, while ARCIL stated that it could not comment further on the matter.

In light of requests from the interested ARCs, Phoenix ARC has extended the due diligence period from September 16 to September 24. Binding bids will be collected on a cash basis on September 27, with the announcement of the anchor bidder scheduled for October 7.

The asset portfolio includes 420 secured retail accounts worth ₹186.9 crore and approximately 560,805 unsecured retail accounts totaling ₹3,363 crore. Additionally, Phoenix ARC plans to conduct a Swiss challenge auction for these assets, utilizing the anchor bid as the starting point. Expressions of interest for this auction will be accepted until October 21, with due diligence continuing until November 4. The final binding bids will be due on November 8, and the highest bidder will be announced on November 21. The anchor bidder will have the opportunity to match this highest bid, with the ultimate successful bidder being finalized on November 25.

Phoenix ARC previously acquired this retail loan portfolio from various banks and has already managed to recover close to ₹1,000 crore from these NPA accounts. The firm has engaged BOB Capital Markets to assist with the sale process.