Canara Bank invites EoIs for counter bids on exposure to 3 NSL companies

State-owned Canara Bank has invited expressions of interest (EoIs) from entities interested in submitting counter bids to acquire its exposure in three NSL group companies through a Swiss challenge auction.

The three NSL group companies include NSL Sugar Ltd, NSL Krishnaveni Sugar Ltd, and NSL Textiles Ltd. NSL Group is led by Mandava Holdings Pvt Ltd, the holding company.

While the state-owned bank has not disclosed its outstanding exposure to the three NSL group companies, it has set total reserve prices amounting to Rs 394.59 crore. The reserve prices are Rs 172.30 crore for NSL Sugars, Rs 33.49 crore for NSL Krishnaveni Sugars, and Rs 188.80 crore for NSL Textiles.

“…information on the accounts like debt profile, security profile, legal status, and other related matters will be provided in the information memorandum (IM) to the asset reconstruction companies (ARCs) / eligible transferees, who will submit EoI along with a non-disclosure agreement,” the bank said in an auction notice.

The bank has invited EoIs for the assets by October 10, after which interested entities will have until October 31 to conduct due diligence. After that, the bank will invite binding offers on a full cash basis from the entities interested in acquiring the assets on November 4.