SBI sells KSK Mahanadi Power loan account to Aditya Birla ARC for Rs 1,622 crore — shares slip to red

The downtrend is following the public sector’s bank’s exchange filing, in which it said, "SBI initiated open offer e-auction towards sale of fund based exposure of KSK Mahanadi Power Co. Ltd on 100 percent cash basis on April 20, 2022 for a reserve price of Rs 1,544.08 crore."

The sale concluded on August 12 following approval from competent internal authorities, the bank said.

In an auction in May end, the bank received 15 expression of interests (EoIs) while only one bid was received from Aditya Birla ARC for an amount of Rs 1,544.08 crore. As the lender received no competing bids, Aditya Birla ARC improved the offer to Rs 1,622 crore in June.

Earlier in December 2021, SBI had put KSK Mahanadi’s e-auction on hold due to administrative reasons. At that time, the total outstanding against the company stood over Rs 4,100 crore.

Established in June 2009, KSK Mahanadi Power was undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 for more than two years.