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

17 May 2023 CW Team

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

Infrastructure Urban

09 Jan 2026

Titan Intech Strengthens UltraLED Push With Global LED Veteran

Titan Intech has announced the induction of global LED industry veteran Su Piow Ko to its Board of Directors, marking a strategic step in strengthening its UltraLED Displays roadmap and building globally competitive LED display solutions from India.The appointment aligns with Titan Intech’s ambition to position India as a hub for advanced, high-quality LED display manufacturing. With an increased focus on UltraLED Displays, the company aims to enhance technical governance, raise manufacturing standards and expand its presence across global markets.Su Piow Ko brings over three decades of inte..

Infrastructure Urban

09 Jan 2026

Dun & Bradstreet Flags New Growth Engines in India 2026 Outlook

Dun & Bradstreet has released its India 2026: D&B’s Perspective report, projecting a stable macroeconomic environment underpinned by fresh opportunities for productivity-led and inclusive growth. The report outlines how India’s next growth phase will be driven by digitised logistics, trusted data ecosystems, clean energy and rising city vitality.According to the outlook, India’s GDP growth is expected to reach around 6.6 per cent by FY2027, supported by resilient consumer demand and sustained public investment. Manufacturing is seen entering a new phase, moving beyond scale towar..

Building Material

09 Jan 2026

Sources Unlimited Introduces Vitamine Pendant Lamp by Melogranoblu

Sources Unlimited has launched the Vitamine Pendant Lamp by Melogranoblu in India, expanding its portfolio of curated international luxury lighting solutions. Designed and crafted in Italy, the Vitamine pendant reflects contemporary glass artistry, combining hand-blown craftsmanship with refined aesthetics and atmospheric illumination.The Vitamine Pendant Lamp is sculpted in hand-blown glass and is available in frosted, silver and black metallised finishes. Each finish offers a distinct visual identity while maintaining a cohesive and sophisticated design language. The lamp’s softly contoure..