Indian Overseas Bank Central Office : P.B.No.3765, 763 Anna Salai, Chennai, 600 002 Recovery Department Date: 01.02.2018 SALE OF NPAs/SMAs LOT I DURING Q4 FOR THE FINANCIAL YEAR 2017-18 IOB invites bids from SCs/ARCs/Banks/NBFCs/FIs for sale of Non Performing Accounts/Special Mention Accounts (list enclosed) during the financial year 2017-18. The time frame for the Sale and details of Data Rooms shall be as follows: S No Procedure 1. Publication in the website and Mailing of PIMs to ARCs by Time frame 01.02.2018 2. Due diligence Period 02.02.2018 to 15.02.2018 3. Data Rooms - IOB Regional Offices at Concerned Regional Office/Branch 4. Withdrawal of accounts by bank 13.02.2018 5 Last date of submission of bid 21.02.2018 6. Opening of tenders followed by negotiation 7. Documentation formalities and payment to be made by 22.02.2018 Bank may, if so desired, permit the bidders to increase their offer and in which case the negotiation will take place during the course of the day after opening of covers and the final offer should be submitted on the same day. Within five days of communication of acceptance by the Bank If interested to participate in the sale process, our Recovery Department may be contacted along with a letter expressing interest and a Non-Disclosure Agreement duly stamped. The terms and conditions for sale are attached along with list of accounts put for sale. GENERAL MANAGER (RECOVERY) Encl: 1.List of Accounts put for Sale 2. Terms and Conditions
INVITATION OF BIDS FROM SCs/ARCs/Banks/NBFCs/FIs FOR PURCHASE OF NPA/SMA ACCOUNTS 2017-2018 IOB invites bids from SCs/ARCs/Banks/NBFCs/FIs for purchase of NPAs/SMA Accounts identified for sale as per list enclosed. The terms and conditions for sale are as under: 1. The Accounts will be sold along with underlying securities on as is where is and as is what is basis without any recourse to the Bank. 2. The offers shall be given separately for each account in Cash / Cash plus Security Receipts. - In respect of the Accounts listed at S. Nos. 1, 2 & 3 of the Enclosure, in the event of inter-se bidding by two or more bidders, the Successful bidder shall be the one offering higher cash component vis-à-vis the SR portion. 3. As regards the Non-Fund Based liabilities as and when devolved, the ARC should take over the crystallised liability from the bank on the same terms and conditions in which the offer is given and accepted by the bank. In the alternative, if there is no take over, the existing securities in favour of the bank shall continue even after assignment in the same manner as if it has not been assigned. 4. IOB will be assigning the outstanding as on the date of acceptance of the offer to the successful bidder. 5. Two weeks time is given to the SCs/ARCs/Banks/NBFCs/FIs for undertaking due diligence. However the entire exercise of due diligence is to be completed by the bidders within the time frame stipulated here under. a. Due Diligence 1. The Bidders shall enter into a Non Disclosure agreement with IOB before conducting due diligence. 2. The process of due diligence shall commence from 02.02.2018 and be completed by 15.02.2018. 3. All costs and expenses incurred to carry out the due diligence study or any other process in furtherance of their interest to purchase of NPAs/SMAs from IOB shall be borne by the bidders only. 4. While IOB will make available all the information to the intending buyers which have come on record, it assumes no responsibility either on the part of IOB or its officers, if found later that the information on record with IOB is not updated and the lack of it or inadequacy of it lead to realizing of lower value or facing litigations in the course of realisation of the value of the security.
b. Withdrawal of account IOB reserves its right to withdraw any account from the list or reallocate /regroup the account without assigning any reason whatsoever by 13.02.2018. c. Submission of bids 1. The bidders shall submit bids both in Cash / Cash plus Security Receipts for all the accounts separately. 2. IOB reserves its sole right to sell the assets either on Cash or Cash plus Security Receipts and the decision of the Bank shall be final. In case the offer is Cash plus Security Receipts then the following conditions apply: a) The cash + SR component shall be as per RBI guidelines. The breakup of cash & SR portion for each account is furnished in the list enclosed. b) The SRs of the Bank and that of the SCs/RCs/Banks/NBFCs/FIs shall be on paripassu basis. c) The SR holders shall be entitled to an Indicative Yield of minimum 5% simple per annum. d) The Management fee of the SR portfolio shall be as follows and shall be charged as per extant/existing RBI guidelines. Sl. No. Period Percentage per annum 1 1 st year 1.50% 2 2 nd & 3 rd year 2.00% 3 4 th year onwards 1.50% e) In case of Upside sharing of any recovery after redemption of the SRs, the same shall be payable in the ratio of 80 (Bank): 20 (SCs/ARCs/Banks/NBFCs/FIs). f) The SR offer document and Trust Deed shall incorporate the above monetary terms only. If there is any other condition such as breakage cost, interest on expenses etc, which will have implication on the sharing pattern, the same should be specifically indicated in the offer letter. It shall be the responsibility of the bidder to ensure that the SR offer document and trust deed are strictly in accordance with the tender terms and terms of acceptance. In the event of any deviation in the SR offer document and Trust deed with that of the tender terms and terms of acceptance, then the tender terms and terms of acceptance only will prevail. g) The management fee and expenses / cost etc shall be payable only out of the realisation made from the financial asset and the ARC/trust should not make any claim from the Bank for contributing towards management fee or towards expenses / cost or claim of any other nature on the ground that realisation is not yet made from the financial asset and no claim in this regard will be entertained by the Bank.
h) Recovery Incentive: There shall be an incentive for recovery as under; Sl. No. Period Percentage on the amount recovered 1 1 st & 2 nd Year 5.00% 2 3 rd Year 4.00% 3 Thereafter NIL 3. IOB reserves the right to withdraw the offer, amend, alter, modify or defer the proposal to sell at any time without assigning any reason. 4. IOB assumes no commitment for sale of its NPAs/SMAs to any bidder and IOB will have sole discretion to reject the offer/bid without assigning any reason. It is the sole discretion of IOB to select the successful bidder. 5. The bids have to be submitted to The General Manager, Recovery Department Indian Overseas Bank, Central Office, 763 Anna Salai, Chennai-2 in a sealed cover mentioning at the cover BID FOR LOT-I during Q4 FY2017-18 : SALE TO ARC to reach by or before 21.02.2018. d. Opening of bids 1. The bid covers will be opened on 22.02.2018 or any subsequent date after due intimation to all the bidders. The bids will be opened in the presence of the authorised representatives of the bidders, if present and IOB may, if so desires permit the bidders to increase their offer in person or through any other means of communication like telephone/fax/email etc. and in which case the negotiation will take place during the course of the day after opening of covers. The final offer should be submitted on the same day. 2. IOB will evaluate the bids and take a final view on them, keeping its requirements etc. and communicate its decision and the successful bidder shall immediately pay the amount within five days of communication of acceptance by the Bank. 3. Since the entire process has to be completed at the earliest, the co-operation of SCs/ARCs/Banks/NBFCs/FIs is solicited. RBI GUIDELINES APPLICABLE TO THE PURCHASER SHALL STRICTLY APPLY. GENERAL MANAGER (RECOVERY) Encl: a/a
Indian Overseas Bank Recovery Department, Central Office, Chennai SL NO ZONE/ REGION/ BRANCH List of Accounts Identified for Sale to SCs/RCs/Banks/NBFCs/FIs Lot-I During Q4 of FY 2017-18 BORROWER NAME Principal Outstanding RESERVE PRICE FIXED Cash SR Total (Amount in Crores) DATA CENTRE 1 M/s VADRAJ CEMENT LIMITED 536.63 81.9105 464.1595 546.07 Branch: Large Corporate Mumbai 2 M/s GATI INFRASTRUCTUR E PVT. LTD. 71.29 10.935 61.965 72.90 Address: Plot-31, G Block, 7 th Floor, Naman Corporate Link, Bandra Kurla Complex, Mumbai- 400051 Contact Person : Shri S. Vasudevan, AGM 3 M/s BOMBAY RAYON FASHIONS LTD. 29.91 4.521 25.619 30.14 Contact Details : 022-2656-6268 Branch : Tolstoy Marg 4 TOLSTOY MARG M/s ASIAN COLOUR COATED ISPAT LTD. 354.05 29.25 165.75 195.00 Address: 7, Prakash Deep Building, Tolstoy Marg, New Delhi 110001 Contact Person: Shri Venkataramana K., CM Contact Details: 011-2371-1599 Branch : ARMB-Delhi 5 ARMB M/s PROTON EXPORTS 22.76 1.7055 9.6645 11.37 Address: 4 th Floor, Ratna Building, 2, rajendra Place, Pusa Road, New Delhi 110008 Contact Person: Shri Ravindran Menon, AGM Contact Details: 011-2875-6499