PE funds ready with Rs 60,000-cr war chest for India Inc fire sale

PE funds have also set up ARCs with partners to buy out loans of companies in the second list of large corporate loan defaulters drawn up by RBI

Global private equity (PE) funds and strategic investors are ready with a war chest of over Rs 60,000 crore which they say will be needed to buy chunks of 12 large companies that are undergoing insolvency proceedings in the National Company Law Tribunal.
 
“The math is simple: the 12 companies have debts of Rs 2.5 lakh crore and lenders will write off 50 per cent,” said an executive with a PE fund that is bidding for some of the indebted steel and automobile sector companies.
 
Assuming a conservative 1:1 debt-equity ratio, the winning bidder will need to bring