Business

1. Deal Sourcing

Deals are generated from
two sources:

  • Auctions by banks
  • Bilateral negotiations (proprietary deals)

Auctions by banks:

  • Portfolios are auctioned sporadically
  • Increase in number in second half of the financial year
  • Preferred route of some banks
  • Auctions could fail due to reserve prices not being met

Bilateral negotiations:

  • Depends on extensive team contacts
  • Bilateral route available throughout the year
  • Preferred route for aggregation

2. Deal Evaluation

We have conducted due diligence of over 3,000 accounts till date, and closed more than 700 accounts.

Due diligence done in-house, drawing upon the captive talent resident in the company

The aspects evaluated are:

  • Business of the borrower
  • Financial position
  • Asset cover and quality of assets
  • Enforceability of legal documents
  • Residual value of company’s business and assets

3. Assignment and Resolution

After internal approval, a bid is made to the selling financial institution (FI) / bank

Deed of assignment executed for completion of acquisition process

Post acquisition the cases are put in the following categories and a separate resolution strategy is formulated:

  • Restructuring/ rescheduling of debt of the borrower
  • Settlement of dues by the borrower
  • Sale of the underlying assets
  • Outsourcing management of portfolio of financial assets
  • Change or takeover of management of business of borrower

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