Announced Wed, 24 Jun · 18:49 IST
Muthoot Capital to sell stressed loan portfolio of about Rs 209 Cr to ARC
Strategic Transactions View source PDF
MUTHOOTCAP · price
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Price reaction · full curve 14 horizons · vs prior close
-4.3%1-day move
₹207.50
prior close
₹207.13
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
+1.4+0.8+1.7+0.7-4.3-2.3-2.2+3.0+4.7+5.7+7.3+4.9——
Up moveDown movePending
AI summary
Muthoot Capital Services has received a binding bid from an Asset Reconstruction Company (ARC) to sell its stressed loan portfolio. The portfolio has a principal outstanding of up to Rs 209.10 Crores, and the ARC has bid up to Rs 96 Crores for it. The company will now use the Swiss Challenge Method to invite further bids before taking a final decision. This move is aimed at cleaning up non-performing assets from the books.
Likely market impact
Positive for asset quality. Recovery of about 46 percent of principal will reduce NPAs and strengthen the balance sheet, though it is a one-time discount.