Singapore-based DBS Bank and Bank of India have put their combined R994-crore exposure in Tecpro Systems up for sale to asset reconstruction companies (ARCs), sources told FE.

While DBS? R591-crore exposure was offered to ARCs last month, Bank of India (BoI) has been scouting for a buyer for its R403-crore loan much before that.

A BoI executive who did not wish to be named said the deal is likely to be struck soon as the account is being restructured as per the decision of the corporate debt-restructuring (CDR) cell.

Last month, a consortium of eight banks led by the State Bank of India (SBI) approved the restructuring of Tecpro?s debt with a package of R4,930 crore. However, ARCs are reluctant to buy the asset since the collateral is inadequate, a senior official at an ARC said.

New Delhi-based Tecpro, which began operations as a manufacturer of conveyors and components in 2002, has now diversified as an EPC solutions provider for the solar power sector after it acquired EverSun Energy in 2012. The firm is headed by Ajay Kumar Bishnoi as its chairman and Amul Gabrani as its vice-chairman.

The three largest promoters in the company are Amul Gabrani (18.51%), Ajay Kumar Bishnoi (17.92%) and Fusion Fittings India (14.94%).

For three months to June, it reported a R180.66-crore loss, three times more than R60-crore loss in the same period last year.

The company?s costs have increased from R 97 crore in the second quarter of last fiscal to R139.9 crore in the Q2 of this fiscal. The company?s losses have, on the other hand, fallen from R306.5 crore in the Q2 of last fiscal to R45 crore in the same period of this fiscal. Its net debt at the end of FY14 stood at R3,505.5 crore, according to Bloomberg.

According to the company?s 2013 annual report (which is the latest available annual report), it has four factories in Rajasthan and one in Haryana.

It also has six subsidiaries ? out these four are incorporated in India and are named Tecpro Energy, Ajmer Waste Processing Company, Bikaner Waste Processing Company and Eversun Energy Private.

The two subsidiaries incorporated outside India are Tecpro Systems (Singapore) and PT Tecpro Systems Indonesia.

Troubled history

* New Delhi-based Tecpro began as a manufacturer of conveyors and components in 2002; it later diversified as an EPC solutions provider for the solar power sector after it acquired EverSun Energy in 2012

* DBS? R591-crore exposure was offered to ARCs last month, while Bank of India (BoI) has been scouting for a buyer for its R403-crore loan much before that

* For three months to June, it reported a R180.66-crore loss, three times more than R60-crore loss in the same period last year

* The company?s costs have increased from R97 crore in the second quarter of last fiscal to R139.9 crore in the Q2 of this fiscal; its losses, on the other hand, have fallen from R306.5 cr in the Q2 of last fiscal to R45 crore in the same period of this fiscal