SBI has sold KSK Mahanadi Power Company’s non-performing loan account to Aditya Birla ARC for Rs 1,622 crore, accepting a discount of almost 58% from the total outstanding amount. KSK Mahanadi Power Company had an outstanding total loan of Rs 3,815.04 crore to State Bank of India (SBI) as of April 2022.

“SBI has launched an open electronic auction offer to sell the fund-based exposure of KSK Mahanadi Power Co. Ltd on a 100% cash basis on 20 April 2022 for a reserve price of Rs 1,544.08 crore,” SBI said in a regulatory filing on Thursday. .

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The public lender had received a total of 15 Expressions of Interest (EoI), while only one bid had been received from Aditya Birla ARC for Rs 1,544.08 crore in an auction at the end of May . In a Swiss auction process in June, the lender said it had not received any competing offers and, based on subsequent discussions, Aditya Birla ARC improved the offer to Rs 1,622 crore.

SBI said the sale closed on August 12, 2022 after obtaining approval from relevant domestic authorities. Previously, the lender suspended KSK Mahanadi’s electronic auction in December 2021 for administrative reasons.

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At that time, the total outstanding against the company stood at over Rs 4,100 crore. Established in June 2009, KSK Mahanadi Power has been in the corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016 for over two years.