+
Lenders to sell debt of smart-city infra provider SPML Infra
SMART CITIES

Lenders to sell debt of smart-city infra provider SPML Infra

Lenders led by State Bank of India (SBI) have initiated the sale of over ₹2,000 crore debt of smart-city infrastructure provider SPML Infrastructure. The reserve price for the debt has been set at ₹405 crore, based on an anchor bid submitted by the government-backed National Asset Reconstruction Company Limited (NARCL).

The anchor bid equates to a recovery of 20% for the lenders.

IDBI Capital Markets & Securities, acting on behalf of SBI, Canara Bank, ICICI Bank, PNB, BOB, and Union Bank of India, has called bids for the debt of SPML Infra.

The six banks are collectively selling approximately ₹2,000 crore worth of debt, which includes both fund-based and non-fund-based loans, as well as optionally convertible debentures. The debt being offered for sale also carries a security value of ₹1,203 crore.

Bidders are required to submit their proposals by May 17, with the e-auction scheduled for June 6. Among the consortium of lenders, SBI holds the largest share of the debt at 38%, followed by Canara Bank at 31% and Punjab National Bank at 12.94%.

The bidding process is under the Swiss Challenge Method, where the bidders can submit with 15% cash and 85% security receipts (SR). The minimum mark-up required for any challenger bid is set at ₹25 crore, which is 6.17% of the base bid. Incremental bids can then be made in increments of ₹20.25 crore (5%) of the base bid.

IDBI Capital has invited interested Asset Reconstruction Companies (ARCs) to participate in both cash and cash:SR structures while other eligible participants, excluding ARCs, can only bid in full cash. ARCs opting for the cash. SR basis must provide an unconditional and irrevocable Bank Guarantee from a first-class bank for the SR portion.

In 2017, the lenders implemented a debt restructuring plan in line with the Reserve Bank of India's guidelines, acknowledging the financial distress faced by SMPL Infra. Consequently, the company's accounts with the banks have been categorized as non-performing assets, prompting most lenders to cease interest charges on loans to the company since November 1, 2019, adhering to RBI's prudential norms.

Also read
Godrej Properties on land-buying spree for housing projects
Housing sales in FY23 were up 48% to Rs 3.47 lakh cr

Lenders led by State Bank of India (SBI) have initiated the sale of over ₹2,000 crore debt of smart-city infrastructure provider SPML Infrastructure. The reserve price for the debt has been set at ₹405 crore, based on an anchor bid submitted by the government-backed National Asset Reconstruction Company Limited (NARCL). The anchor bid equates to a recovery of 20% for the lenders. IDBI Capital Markets & Securities, acting on behalf of SBI, Canara Bank, ICICI Bank, PNB, BOB, and Union Bank of India, has called bids for the debt of SPML Infra. The six banks are collectively selling approximately ₹2,000 crore worth of debt, which includes both fund-based and non-fund-based loans, as well as optionally convertible debentures. The debt being offered for sale also carries a security value of ₹1,203 crore. Bidders are required to submit their proposals by May 17, with the e-auction scheduled for June 6. Among the consortium of lenders, SBI holds the largest share of the debt at 38%, followed by Canara Bank at 31% and Punjab National Bank at 12.94%. The bidding process is under the Swiss Challenge Method, where the bidders can submit with 15% cash and 85% security receipts (SR). The minimum mark-up required for any challenger bid is set at ₹25 crore, which is 6.17% of the base bid. Incremental bids can then be made in increments of ₹20.25 crore (5%) of the base bid. IDBI Capital has invited interested Asset Reconstruction Companies (ARCs) to participate in both cash and cash:SR structures while other eligible participants, excluding ARCs, can only bid in full cash. ARCs opting for the cash. SR basis must provide an unconditional and irrevocable Bank Guarantee from a first-class bank for the SR portion. In 2017, the lenders implemented a debt restructuring plan in line with the Reserve Bank of India's guidelines, acknowledging the financial distress faced by SMPL Infra. Consequently, the company's accounts with the banks have been categorized as non-performing assets, prompting most lenders to cease interest charges on loans to the company since November 1, 2019, adhering to RBI's prudential norms. Also read Godrej Properties on land-buying spree for housing projects Housing sales in FY23 were up 48% to Rs 3.47 lakh cr

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?