Back to Career News

Central Bank of India and Mumbai's M Pallonji & Co Among Bidders for Future Enterprises' Assets

March 21, 2024

Central Bank of India and Mumbai's M Pallonji & Co Among Bidders for Future Enterprises' Assets

Central Bank of India and Mumbai-based M Pallonji & Co have emerged as key bidders for Future Enterprises’ insurance business, offering Rs 450 crore and Rs 300 crore respectively, according to sources familiar with the matter. Additionally, two other bidders have shown interest in acquiring the company’s manufacturing units in Maharashtra and Karnataka.

After initial attempts to sell the entire company fell short, lenders decided to offer different segments for sale. Future Enterprises, which owes creditors more than Rs 13,540 crore, saw Central Bank emerging as the largest creditor, with over Rs 4,000 crore in admitted claims.

Under the Insolvency and Bankruptcy Code (IBC), creditors are entitled to submit takeover plans. However, concerns have arisen regarding the strength of the bids, considering the substantial dues owed by the company.

All bidders have submitted a Rs 1 crore earnest money deposit (EMD), with lenders now deliberating on negotiation strategies. The timeline for the process extends until the first week of May, with the option to seek an extension if needed.

In this bidding process, Central Bank and Pallonji have shown interest in the insurance business, while Orissa Metaliks and Uniworth Finlease have bid for manufacturing units. Despite efforts to divide assets into clusters to attract better valuations, bids for textile businesses have yet to materialize.

Previously, eleven entities had expressed interest in acquiring portions of Future Enterprises, indicating ongoing interest despite challenges in the bidding process.

Recommended for you ...

Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners
Axis Bank and Mastercard Launch Premium Credit Card for Small Business Owners

September 26, 2024

Banks Report Over 15% Growth in New Credit Card Additions: RBI Data
Banks Report Over 15% Growth in New Credit Card Additions: RBI Data

September 26, 2024

National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank
National Company Law Tribunal (NCLT) Approves Merger of IDFC and IDFC First Bank

September 25, 2024

Chat on WhatsApp