L&T Finance sells Rs 47.62 bn of distressed assets

28 Sep 2023 CW Team

L&T Finance, a subsidiary of L&T Finance Holding, had invited offers from ARCs for a portfolio valued at Rs 52.93 billion, comprising 16 accounts. The offering was structured with a combination of security receipts (SR) and cash payments, with 15 per cent paid upfront in cash and the remaining 85 per cent as security receipts. A reserve price of Rs20.80 billion was set.

However, none of the ARCs expressed interest in acquiring the exposure to Delhi-NCR realtor Supertech, one of the 16 accounts with outstanding loans of Rs 5.31 billion. Consequently, L&T Finance opted to sell 15 accounts with outstanding loans amounting to Rs 47.62 billion.

It is expected that the deal will be finalised before the end of the current month. L&T Finance's stock has seen a 40 per cent increase in 2023, reflecting the company's efforts to clean up its balance sheet by divesting troubled assets. Among the problematic exposures in L&T's portfolio are Avantha Holdings (Rs11.16 billion), Bhoruka Power (Rs18.76 billion), IREO (Rs 4.33 billion), and Supertech (Rs 5.31 billion).

The remaining accounts in the portfolio include Bhoruka Power Investments, Coast Town Planners, CSA Properties, Hanjer Biotech Mira, JCSA Enterprises, Mabsoot Buildhomes India, ND Telecom Services, Perpendicular Construction, RPS Infrastructure, Sagar Power Dendela, Shapoorji Pallonji Development Managers, and Smartstone Property Developers.

L&T Finance has been consistently offloading distressed asset portfolios to ARCs. In June of the current year, the finance company sold an Rs18 billion portfolio to Phoenix ARC, consisting of six real estate accounts, and in March, it divested an Rs 8.80 billion distressed portfolio containing five real estate loans to the Pune-based Xrbia group.

L&T Finance is set to offload its distressed-asset loan book worth Rs 47.62 billion to three asset reconstruction companies (ARCs) by the end of the current quarter, according to sources familiar with the matter. Phoenix ARC, backed by Kotak Mahindra Bank, is expected to acquire the majority of the 15 bid-out accounts, followed by CFM ARC and Prudent ARC.L&T Finance, a subsidiary of L&T Finance Holding, had invited offers from ARCs for a portfolio valued at Rs 52.93 billion, comprising 16 accounts. The offering was structured with a combination of security receipts (SR) and cash payments, with 15 per cent paid upfront in cash and the remaining 85 per cent as security receipts. A reserve price of Rs20.80 billion was set.However, none of the ARCs expressed interest in acquiring the exposure to Delhi-NCR realtor Supertech, one of the 16 accounts with outstanding loans of Rs 5.31 billion. Consequently, L&T Finance opted to sell 15 accounts with outstanding loans amounting to Rs 47.62 billion.It is expected that the deal will be finalised before the end of the current month. L&T Finance's stock has seen a 40 per cent increase in 2023, reflecting the company's efforts to clean up its balance sheet by divesting troubled assets. Among the problematic exposures in L&T's portfolio are Avantha Holdings (Rs11.16 billion), Bhoruka Power (Rs18.76 billion), IREO (Rs 4.33 billion), and Supertech (Rs 5.31 billion).The remaining accounts in the portfolio include Bhoruka Power Investments, Coast Town Planners, CSA Properties, Hanjer Biotech Mira, JCSA Enterprises, Mabsoot Buildhomes India, ND Telecom Services, Perpendicular Construction, RPS Infrastructure, Sagar Power Dendela, Shapoorji Pallonji Development Managers, and Smartstone Property Developers.L&T Finance has been consistently offloading distressed asset portfolios to ARCs. In June of the current year, the finance company sold an Rs18 billion portfolio to Phoenix ARC, consisting of six real estate accounts, and in March, it divested an Rs 8.80 billion distressed portfolio containing five real estate loans to the Pune-based Xrbia group.

Infrastructure Urban

23 Oct 2025

Indian Army and JCBL to Set Up Vehicle Repair Hub in Leh

The Fire & Fury Corps of the Indian Army has signed a Memorandum of Understanding (MoU) with Airbornics Defence & Space (ADSL), a company under the JCBL Group, to establish a New Generation Vehicle (NGV) Repair Hub and Warehouse within the 14 Corps Zonal Workshop in Leh.This initiative marks a significant step toward enhancing the Army’s logistics and operational readiness by creating a dedicated OEM-backed maintenance and repair ecosystem for next-generation vehicles deployed in the high-altitude region.The MoU signing ceremony took place at Headquarters 14 Corps, Leh, in the presence of Lt..

Infrastructure Energy

23 Oct 2025

Hettich Strengthens Industry Ties at Madhya Pradesh Investment Meet

Hettich India, a global leader in furniture fittings, reinforced its commitment to Madhya Pradesh’s industrial growth as a Guest of Honour at an Interactive Session on Investment Opportunities in Power, Renewable Energy Equipment, and White Goods Manufacturing, hosted by the Government of Madhya Pradesh in partnership with the Confederation of Indian Industry (CII) at Hotel Trident, Nariman Point, Mumbai.The session, chaired by Dr Mohan Yadav, Hon’ble Chief Minister of Madhya Pradesh, brought together leading domestic and international investors, industry representatives, and business lead..

Equipment

23 Oct 2025

SANY India Strengthens Rajasthan Presence with New 4S Dealership in Jaipur

SANY India, a leading manufacturer of construction, mining, road, logistics, and energy equipment, has inaugurated a new 4S dealership (Sales, Service, Spares, Stocking) in Jaipur in partnership with Shree Balajee Infra. This expansion reinforces SANY India’s commitment to delivering world-class products and enhanced after-sales support to customers across Rajasthan.The dealership will serve key regions including Kanakpura, Jaipur, Kekri, Kota, Bayana, Nagor, Alwar, Ajmer, Udaipur, Kelwa, Jalore, Bhilwara, and Chitamba, providing convenient access to SANY’s extensive product range and effi..