KSK Mahanadi Power Company sold Aditya Birla ARC for a loan amount of Rs 1,622 crore, against the total outstanding at 58 per cent to Rs 3,815.04 crore towards State Bank of India (SBI) as of April 2022.

“SBI initiated an open offer e-auction towards a sale of fund-based exposure of KSK Mahanadi Power Co. Ltd on 100 per cent cash basis on April 20, 2022, for a reserve price of Rs 1,544.08 crore,” SBI said in a regulatory filing on Thursday.

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The state-owned lender had received 15 expressions of interests (EoIs), while only one bid was received from Aditya Birla ARC for an amount of Rs 1,544.08 crore in an auction in May. Also, the lender received no competing bids, which was based on subsequent discussion; Aditya Birla ARC improved the offer to Rs 1,622 crore.

As per the SBI statement, the sale concluded on August 12, after getting approval from the internet authorities competent. The lender had put the e-auction of KSK Mahanadi on hold in December 2021, citing administrative reasons. The company has a total outstanding of over Rs 4,100 crore.

In June 2009, for more than two years, KSK Mahanadi Power was undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016.