SBI Caps asks ARCs to make final offers for Vidarbha Industries' debt

SBI Caps, the investment banking arm of State Bank of India (SBI), has short-listed Aditya Birla Asset Reconstruction Company, Reliance ARC, and Asset Reconstruction Company India (ARCIL) to conduct due diligence on  bankrupt Vidarbha Industries Power Limited (VIPL) and make binding offers to acquire the company's debt.

Aditya Birla ARC has joined hands with Varde Partners of Singapore to acquire the company's debt, said a banking source.

All bidders will be given three more weeks to complete the due diligence and join the Swiss challenge auction process.

After the auction, lenders may take another three weeks to close the transaction, thus targeting to sell VIPL's debt by the end of September.

The lenders of VIPL had earlier declared CFM ARC’s Rs 1,220 crore bid as the anchor bid to seek EoIs.

CFM ARC has the option to match the best offer made by the rival ARCs.