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Bad loan specialist on maiden issue track

Mumbai, Oct. 20: Asset Reconstruction Company of India Ltd (ARCIL) is floating the first-ever issue of around Rs 2,000 crore to raise funds by securitising the non-performing assets of nine domestic companies.

The issue, slated for October 27, will be earmarked for acquiring the non-performing assets of nine companies, namely Birla VXL, Modern Denim, Core Health Care, Shree Rama Mutitech, GSL (India), Precision Fasteners, Uniworth, Kalyanpur Cements, GASL (India) Ltd.

“We are floating nine separate special purpose vehicles for nine funds and the first tranche will remain open till mid-November,” said S. Khasnobis, chief operating officer.

It has pegged the value of the assets at Rs 4,000 crore, he added. The investors of this issue are likely to be big banks who have lent crores of money to the failed enterprises. ARCIL will buy the non-performing assets and later securitise these assets at a discount.

Asset Reconstruction Company sources said the securitisation programme would be clubbed as a non-PLR investment and kept outside the purview of the 5 per cent cap applied to banks’ equity investment.

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