homefinance News

SBI sells KSK Mahanadi Power loan account to Aditya Birla ARC for Rs 1,622 crore — shares slip to red

SBI sells KSK Mahanadi Power loan account to Aditya Birla ARC for Rs 1,622 crore — shares slip to red

SBI sells KSK Mahanadi Power loan account to Aditya Birla ARC for Rs 1,622 crore — shares slip to red
Read Time2 Min(s) Read
Profile image

By CNBCTV18.com Aug 19, 2022 3:33:34 PM IST (Published)

SBI shares slipped to red after the lender announced it sold the non-performing loan account of KSK Mahanadi Power Company to Aditya Birla ARC for Rs 1,622 crore.

State Bank of India (SBI) has sold the non-performing loan account of KSK Mahanadi Power Company to Aditya Birla ARC, the company said in a regulatory filing on Thursday, following the lender’s stock traded in red on Friday.

Recommended Articles

View All

KSK Mahanadi Power Company had a total loan amounting to Rs 3,815.04 crore outstanding towards SBI as of April 2022. The loan account’s sale to Aditya Birla ARC for Rs 1,622 crore means the lender is accepting a haircut of almost 58 percent against the total outstanding.
SBI shares lost 2.6 percent in intraday trade. The stock was trading 2.08 percent from the previous close at Rs 521.35 on BSE at 3:10 pm.
The downtrend is following the public sector’s bank’s exchange filing, in which it said, "SBI initiated open offer e-auction towards sale of fund based exposure of KSK Mahanadi Power Co. Ltd on 100 percent cash basis on April 20, 2022 for a reserve price of Rs 1,544.08 crore."
The sale concluded on August 12 following approval from competent internal authorities, the bank said.
In an auction in May end, the bank received 15 expression of interests (EoIs) while only one bid was received from Aditya Birla ARC for an amount of Rs 1,544.08 crore. As the lender received no competing bids, Aditya Birla ARC improved the offer to Rs 1,622 crore in June.
Earlier in December 2021, SBI had put KSK Mahanadi’s e-auction on hold due to administrative reasons. At that time, the total outstanding against the company stood over Rs 4,100 crore.
Established in June 2009, KSK Mahanadi Power was undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 for more than two years.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng