At least three bids have been received for the Srei group companies currently under the insolvency resolution process.
New York-based investment firm Arena Investors, VFSI Holdings, an affiliate of Värde Investment Partners, and Shon Randhawa (lead partner) and Rajesh Viren Shah, are understood to have submitted resolution plans for the two insolvent companies.
The lenders had earlier extended the deadline to submit resolution plans for the two NBFCs by 10 days to August 10, after prospective bidders requested them for an extension of the timeline.
The deadline earlier was July 30. It was extended for the third time.
“At least three bids have come. The bidders are Arena Investors, Värde Investment Partners and Shon Randhawa and his partner,” sources close t the developments told FE.
“The committee of creditors (CoC) is holding a meeting today. The CoC is now scrutinising the bids. The creditors will not accept bids which are non-compliant,” one of the sources said.
Mails sent to Rajneesh Sharma, the administrator for the two insolvent firms, went unanswered till the time of going to press.
Notably, the final list of the prospective resolution applicants for Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL) consisted of as many as 13 entities, including Vedanta, Jindal Power, ARCIL, JM Financial Asset Reconstruction Company and Edelweiss Alternative Asset Advisors.
September 4 is the deadline for submitting the proposed resolution plan of the highest bidder (H1) to the Kolkata bench of the National Company Law (NCLT) as decided by the tribunal.
Insolvency proceedings against SIFL and its subsidiary SEFL, the two NBFCs, commenced on October 2021 after the insolvency petitions, filed by the Reserve Bank of India, had been approved by the Kolkata bench of the NCLT.
Rajneesh Sharma, former chief general manager of Bank of Baroda, took charge of the two Srei companies after the central bank came down heavily on both the companies over governance issues and superseded the boards of directors. Srei Equipment Finance, a wholly-owned subsidiary of Srei Infrastructure Finance, in April last year said it had received expressions of interest (EoIs) from international private equity investors, including US-based Arena Investors, for capital infusion into the company.