Banking News

L&T Finance invites bids for ₹880-cr Xrbia loans

L&T Finance is seeking buyers for a distressed real estate portfolio comprising loans given to Pune-based Xrbia Group, said two people aware of the development.

The company has invited offers for a loan book of ₹880 crore given to five Xrbia Group companies, the people said.

While inviting expressions of interest (EoI) from asset reconstruction companies, L&T has not set a reserve price for the portfolio. It received half a dozen EoIs from ARCs, said one of the persons cited above.

The five accounts comprise Xrbia Developers with a debt of ₹435 crore, Xrbia Chakan Developers with ₹164 crore, Xrbia Warai Developers with ₹156 crore, Xrbia Ambience Realty LLP with ₹107 crore and Eiffel Lifespaces with ₹18 crore debt.

L&T Finance has invited offers under the 15:85 structure, which involves 15% of the consideration as cash and the remaining 85% as security receipts (SR) payable on recovery of the loans from the borrower.

L&T Finance did not respond to ET’s request for comment.

Xrbia group started real estate operations in 1995 and has so far executed projects with over 14 million square feet (MSF) of saleable area, said a report by Icra Ratings dated September 21, 2022. Icra also stated that over 20 MSF is under various stages of development spread across affordable housing, plotting schemes and mid-luxury residences.Icra last issued a rating on Xrbia Developers in May 2019, where it revised the outlook from positive to stable for ₹ 350 crore debt and assigned a BBB+ rating. In the same report, the firm moved the account to ‘Issuer not cooperating.’

In its quarterly results, L&T Finance does not disclose its gross or net non-performing assets to investors. Its gross stage three (GS3) loans stood at ₹3,723 crore, or 4.21% of total loans, as on December 31, 2022, the company’s presentation to analysts showed. The GS3 stood at ₹5,623 crore during the quarter ending December 2021, the same presentation stated.

GS3 comprises loans due for more than 90 days and other stressed assets.

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