Leading financial institutions (FIs) like Industrial
Development Bank of India (IDBI), Industrial Financial
Corporation of India (IFCI) and Hyderabad Bank have roped
in Armedas, a Mumbai-based financial consortium, to sell
the sticky assets of their defaulters to be acquired under
the Securitisation Act.
FIs and the bank have asked Armedas to start proceedings
to acquire and sell assets of their four major defaulters
in Ahmedabad, Chennai and Andhra Pradesh as early as possible.
The total worth of these assets are estimated at over
Rs 500 crore.
is a financial consortium that includes Megharaj Financial
Services (an investment bank), Dalal Mott MacDonald, NA
Shah Associates and Chesterton Meghhraj Property Consultant.
They will assist the lenders to acquire the assets of
the defaulters and to sell the same to a third party.
consortium will also provide a comprehensive and complete
range of asset valuation and recovery services under the
Securitisation Act. Armedas is made up of functional specialists
with expertise in the fields of investment banking, debt
restructuring and partner search.
Meghraj Financial Services managing director A S Anand
Kumar: Currently we are working on four different
asset acquisition projects for IDBI, IFCI and Hyderabad
Bank two in Ahmedabad, one in Chennai and the other
in Hyderabad. Three more projects are in the offing.
He is, however, reluctant to reveal the names of these
says the effectiveness of similar kinds of consortium
has been increasing by the promulgation of the Securitisation
Act, which enables FIs and banks to seize the assets of
defaulters and recover their dues by hawking their assets.
The bad debts of banks now total over Rs 1,10,000 crore.
the modus operandi of Armedas, Kumar says Chesterton
Meghraj will act as the broker for the property sales,
while the valuation of these properties will be carried
out by engineering consulting firm Dalal Mott MacDonald.
NA Shah Associates will suggest tax-effective means of
going ahead with the transaction while Meghraj will find
a suitable buyer by using its international network.
has worked out two models for the sale of these assets
either the property could be sold separately or
the company, along with its underlying assets, could be