On August 11, the bankruptcy court in Kolkata approved the resolution plan submitted by the government-owned National Asset Reconstruction Company Ltd for the twin Srei companies owned by the Kanoria family.

This will be NARCL's first acquisition since it was founded two years ago with the goal of acquiring bad loans from Indian banks. NARCL, which made the highest bid of the three bidders, will now seek Reserve Bank of India approval to acquire Srei Equipment Finance and Srei Infrastructure Finance.

The ARC offered Rs 5,555 crore on a net present value (NPV) basis for the assets, while Authum Investment offered Rs 5,526 crore. Arena-Varde team offered Rs 4,682 crore at an auction on January 3. However, the team improved its offer to Rs 4,832 crore a day later. All offers are on an NPV basis, which is arrived at by discounting future cash flows.

The administrator has accepted Rs 32,750 crore in verified creditors' claims. On an NPV basis, NARCL's offer represents a 17% recovery.

The Kolkata bench denied the promoter's petition under Section 12A, which allows the promoter to submit a plan under the Insolvency and Bankruptcy Code. The bench also dismissed a petition filed by Authum, which questioned the process used by the administrator of Srei to count votes. In February, 87% of confirmed creditors supported NARCL's resolution plan, while 77% supported Authum Investment and Infrastructure.