The bank’s plan to sell the loan comes as it awaits National Company Law Tribunal (NCLT) directions on its petition filed in August 2024 to take the company to the bankruptcy court .
“The bank is expecting cash offers for the loan. It is the only creditor to the company, which is one of India’s largest gold jewellery producers. Interested parties must submit their EoIs this week,” said a person aware of the sale.
Separate emails sent to Canara and Rajesh Exports did not elicit a response till press time.
“Canara Bank is just gauging investor interest for these loans. If the bank gets a good response, then the process will move to a bidding process to figure out the anchor bidder,” said a second person aware of the details.
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The anchor bid will become the basis for a Swiss Challenge auction in which new bidders will be given the opportunity to match that of the anchor bid.
Incorporated in 1989, the Bengaluru-based Rajesh Exports is present in the entire value chain of gold from refining to retailing. The company has base operations across the world but has been under stress since 2022.Canara Bank has filed a bankruptcy plea against the company, but it has not been admitted as the company has challenged it. If successful, the bank plans to sell its loan and avoid long litigation in this case.