Gujarat NRE windmill assets put on sale

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Mumbai | Published: March 23, 2016 12:35:04 AM

Lenders to Gujarat NRE Coke put on sale its windmill assets in Kutch, Jamnagar for Rs 299.6-cr reserve price

Lenders to loss-making Gujarat NRE Coke have put on sale the company’s 87.5-MW windmill assets in Kutch and Jamnagar for a reserve price of Rs 299.6 crore.

According to an invitation for bids, SBI Capital Markets has been mandated by the consortium of banks led by State Bank of India (SBI) to find a buyer for the asset.

Interestingly, although the company’s board had approved the sale of its wind mill business for Rs 218.75 crore last year, the reserve price or the lowest bid price was fixed at close to Rs 300 crore.

The company’s FY15 gross debt, according to Bloomberg, stood at Rs 3,011 crore, up from Rs 2,726 crore in the previous year. While the final binding offer and contract performance guarantee (CPG) of R10 crore had to be deposited by March 19, it could not be immediately ascertained how many bids have been received.

“We have received a few bids for the windmill assets and are yet to arrive at a decision,” a SBI official confirmed on Tuesday.

The company is part of Gujarat NRE group which has presence in diversified sectors including power, steel and metallurgical coke.

It has a capacity to produce 1.458 Million Tonnes Per Annum (MTPA) metallurgical coke (met coke). Following CDR, the company is in the process of merging its group companies – NRE Metcoke Limited and Bajrang Bali Coke Industries Limited with itself – and the scheme has been approved by the Calcutta High Court.

In 2014, lenders had approved a corporate debt restructuring (CDR) and had allowed repayment to be spread over 10 years with a two-year moratorium on payments.

The company had also received an additional working capital up to R370 crore.

In Q3 FY16, the company posted a loss of R301 crore on the back of R142 crore in revenues primarily because of an increase in interest outgo of R85 crore.

As on March 31, 2015 the debt- equity ratio was 6.71 as compared to 2.24 a year before.

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