In a first-of-its-kind move, the lender ran a swiss challenge process starting with a base price of ₹428 crore, which eventually drew a binding offer of ₹520 crore from Prudent Asset Reconstruction Company (ARC).
That trumped the promoter’s one-time settlement offer of ₹475 crore.
The sale, however, has been challenged by the borrower in the high court and the court is yet to give its verdict.
About two to three months ago, Canara Bank launched a bidding process to determine settlement value, starting with a base price of ₹428 crore.
Prudent ARC submitted a bid of ₹465 crore. Subsequently, the borrower offered a one-time settlement (OTS) of ₹475 crore. However, that settlement didn’t materialise. BOB Capital is the process advisor for the sale. ET had reported on July 25 that promoters had offered ₹472 crore as a one-time settlement.
In the next stage, lenders received a binding ARC anchor bid of ₹520 crore from Prudent ARC. This was then opened for counter bidding through a Swiss challenge auction.
Against a total outstanding of ₹606 crore as of August 31, 2025 including principal of ₹457 crore owed to a consortium led by Canara Bank along with Bank of Baroda and Punjab & Sind Bank.
Karanja Terminal is an SPV formed by Mercantile Ports and Logistics to develop an all-weather port and logistics facility at Karanja Creek, Chanje village in Raigad district of Maharashtra.
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