Omkara ARC win bids to acquire of SASF’s NPA loan portfolio worth Rs 6,151 crore

SASF has released the final list of bidders who have submitted expressions of interest for these.

Omkara Asset Reconstruction Pvt Ltd has successfully acquired non-performing loan accounts totaling Rs 6,151.16 crore, which were up for sale by the Stressed Assets Stabilisation Fund (SASF). The auction for these NPA accounts took place on August 3 at 4:00 PM, with the results announced shortly after.

On August 3, Moneycontrol reported Omkara Asset Reconstruction Pvt Ltd and National Asset Reconstruction Company Ltd (NARCL) emerged as frontrunners to acquire these loan accounts.

**SASF Releases Final List of Bidders for Rs 6,151.16 Crore NPA Sale**

The Stressed Assets Stabilisation Fund (SASF) has released the final list of bidders for the sale of non-performing loan accounts worth Rs 6,151.16 crore. The list includes 14 asset reconstruction companies, among them Omkara ARC and NARCL.

On July 13, SASF invited expressions of interest to sell 239 non-performing loan accounts, setting a reserve price of Rs 642 crore. Of the 239 accounts, 81 involve tangible securities and guarantees with a gross principal outstanding of Rs 2,179.51 crore, while the remaining 158 accounts are backed by guarantees and claims with a gross principal outstanding of Rs 3,971.65 crore.

SASF has appointed Ernst & Young LLP as the process advisor to assist with the proposed assignment or sale of the NPA portfolio.

Established by the Government of India under the Union Budget 2004-05, SASF operates as a Special Purpose Vehicle (SPV) Trust to acquire stressed and non-performing assets from the former Industrial Development Bank of India (IDBI).

SASF has been accorded the status of Financial Institution to take advantage of provision of the Recovery of Debts due to Banks and Financial Institutions, 1993 by approaching Debt Recovery Tribunal (DRT) as well as Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002, Corporate Debt Restructuring (CDR) mechanism for resolution of the assets acquired along with proceedings under Insolvency and Bankruptcy Code, 2016 (IBC) through NCLT.