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UK’s Varde may get troubled Srei cos for ₹14,000 crore

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KOLKATA: Srei Infrastructure Finance (SIFL) and Srei Equipment Finance (SEFL), which are going through insolvency proceedings, are believed to have got “very good” financial bids. Sources said that London-based Varde Capital has put in a bid of over Rs 14,000 crore. This, along with Rs 2,500 crore in the group’s balance sheet, would fetch a recovery of almost 50% for the creditors. This is higher than the average Insolvency and Bankruptcy Code (IBC) recovery.
According to the sources, the second-highest bid was also in excess of Rs 10,000 crore. Meanwhile, another bidder Arena Capital sought time for the bank guarantee, and was granted till August 19. The bids will be opened on that day, the sources added. They said that the three resolution applicants that filed bids are VFSI Holdings Pte, Arena Investors and Shon Randhawa.
VFSI Holdings is an asso- ciate of London-based Varde Partners, which is an alternative investment fund. Arena is also a leading PE firm, while Randhawa has partnered with Rajesh Viren Shah for the bid. Shah is the owner of Mukund, a well-known steel player and son of Viren J Shah, former governor of West Bengal.
The Srei administrator, Rajnish Sharma, could not be contacted for a comment on the bids till the time of going to press. The last date of submission of bids was August 10 following four extensions as bidders kept seeking more time to understand the financial criticality of the Srei firms.
The RBI-appointed administrator had admitted claims of around Rs 31,868 crore of the total Rs 34,223 crore approximately from financial creditors of SEFL. The administrator also admitted claims to the tune of Rs 257 crore from financial creditors of SIFL. Out of these, claims worth Rs 22,910 crore were from the commercial lenders of SIFL and its wholly owned subsidiary SEFL, against the combined amount of Rs 25,115 crore claimed by them.


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