ENA MSME 2024-02-05 14:15:22 <p><span style="font-size:14px"><strong>Mumbai, Feb 5 (KNN)</strong> The Indian Overseas Bank (IOB) is set to conduct an auction of bad loans within the Micro, Small, and Medium Enterprises (MSME) sector, aiming to achieve a substantial 60 per cent debt recovery.</span></p> <p><span style="font-size:14px">The bank has identified 41 accounts in this segment, totaling Rs 208 crore, and is actively seeking buyers to participate in the auction.</span></p> <p><span style="font-size:14px">The recovery strategy involves inviting potential buyers to submit offers, with a specified structure of 20 per cent in cash and 80 per cent in Security Receipts (SR).</span></p> <p><span style="font-size:14px">Expressions of interest from potential buyers must be submitted by February 9, and the e-bidding process is scheduled for February 21.</span></p> <p><span style="font-size:14px">Bidders are encouraged to provide a 5 per cent mark-up on the base bid, which consists of 20 per cent cash and 80 per cent SR, with preference given to bids with a higher cash component.</span></p> <p><span style="font-size:14px">The cash portion of the bid is set at Rs 26.40, complemented by the SR portion of Rs 105.60, culminating in a total recovery expectation of Rs 125 crore. This represents 60 per cent of the outstanding book value of the bad loans in question.</span></p> <p><span style="font-size:14px">Additionally, IOB has established an initial amount of Rs 132.00 crore for counter bids, reflecting a 5.34 per cent mark-up from the binding bid amount of Rs 125.3 crore, basis the prescribed 20 per cent cash and 80 per cent SR structure.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 36569 https://knnindia.co.in/news/newsdetails/msme/iob-to-auction-bad-loans-in-msme-sector-aiming-for-60-debt-recovery 2024-02-05 14:15:22 knnindia.co.in