A diverse group of companies including Adani Ports and Special Economic Zone, JSW Infrastructure, Horizon Industrial Parks and Transindia Real Estate Ltd have shown interest in acquiring listed supply chain and logistics infrastructure firm Arshiya Ltd, which is undergoing a corporate insolvency resolution process.
Investors such as Authum Investment & Infrastructure Ltd, Dickey Alternative Investment Trust and Finquest Financial Solutions Pvt Ltd have also evinced interest in the company, said a person aware of the development. The company has admitted liabilities of over Rs 6,647 crore, which includes about Rs 3,082 crore from secured financial creditors and Rs 3,544 crore from unsecured financial creditors.
Mumbai-based Arshiya provides unified supply chain and integrated logistics infrastructure solutions. It develops, operates and maintains free trade and warehousing zones.
As per the company’s website, it is the only free zone developer operating two free trade warehousing zones (FTWZs) and the largest private container train operator with pan-India operations. The company also owns the only private inland container depot with six rail loop lines.
The company’s resolution professional Pankaj Mahajan declined to comment, citing confidentiality due to the ongoing corporate insolvency resolution process. Emailed queries to Adani Ports and Special Economic Zone, JSW Infrastructure, Horizon Industrial Parks and Transindia Real Estate remained answered until press time. Authum Investment & Infrastructure Ltd, Dickey Alternative Investment Trust and Finquest Financial Solutions Pvt Ltd did not respond to query either.
“A diverse group of bidders are interested in the company due to large assets at very strategic locations,” said the person cited earlier. “It has a container yard with an approximate storage capacity of 6,000 containers and seven warehouses with a combined total leasable area of about 1.16 million sq ft.” Arshiya was admitted under CIRP in April last year following an application by its lender Punjab National Bank. It had defaulted on dues of about Rs 193 crore.
Sudip Mahapatra, partner at law firm S&R Associates, said companies with real physical assets undergoing CIRP are attractive targets for many reasons.
“Firstly, the physical assets will typically not lose value during the insolvency resolution process. Secondly, the debt can also be brought down to a sustainable level through the IBC process to make the business viable,” said Mahapatra.
“Companies with real assets therefore tend to see more interest from bidders. Also, given the massive growth in India’s consumption story, there is a significant interest in the logistics sector,” he added.