NARCL Makes ₹631 Crore Anchor Bid in BGR Energy's Debt Auction

National Asset Reconstruction Company Ltd. (NARCL) has submitted an anchor bid of ₹630.67 crore for the stressed debt of BGR Energy Systems, as per reports. The debt, worth more than ₹3,500 crore, is being offered by a consortium of lenders through a Swiss challenge auction. The bid has been made on a 15:85 cash-to-security receipt basis, with 15% to be paid upfront and the remaining 85% through security receipts.

Recovery for Lenders

As per the report, if accepted, the anchor bid would mean a recovery of about 18% for the lenders involved. The consortium has a total outstanding of ₹3,512.33 crore against BGR Energy as of July 31, 2025. This includes ₹2,920.49 crore in fund-based loans and ₹591.84 crore in non-fund-based exposure.

Bank-wise Exposure

As per reports, State Bank of India is the largest lender, with dues of ₹1,698.94 crore, or about 64% of the total. Canara Bank has an exposure of ₹526 crore, IDBI Bank with ₹271 crore, Punjab National Bank with ₹270 crore, Indian Bank with ₹243.59 crore, and Bank of India with ₹208 crore. Union Bank of India, Central Bank of India, and Bank of Baroda hold the balance. Separately, ICICI Bank, Axis Bank, and Kotak Mahindra Bank have a combined exposure of ₹165 crore that is not part of this auction.

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Auction Timeline

As per the report, IDBI Capital Markets and Securities, acting as process advisor, has invited counterbids for the Swiss challenge auction scheduled on September 3, 2025. Expressions of interest were to be filed by August 10, 2025, with due diligence open until September 2. Competing bids must be at least 5.55% higher than NARCL’s offer. Results will be declared on September 6, 2025. NARCL will then have the option to match the highest bid. If no counterbids are received, NARCL’s anchor bid will stand.

BGR Energy, headquartered in Chennai, was founded in 1985 as a joint venture with Germany’s GEA Energietechnik GmbH. It became fully Indian-owned in 1993 and was renamed BGR Energy Systems in 2007.

BGR Energy Systems Share Price Performance

As of August 20, 2025, 10:06 AM, BGR Energy Systems share price is trading at ₹149.53, a 10% increase from the previous close price.

Conclusion

The outcome of the Swiss challenge auction will determine whether NARCL’s bid leads to recovery for lenders or if counterbidders take over the account.

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