Punj Lloyd fails to attract any bidder in second round of e-auction

Debt-ridden engineering, procurement and construction company Punj Lloyd, which is facing liquidation, has again failed to attract any buyer in the second round of e-auctions conducted by its liquidator. The second round of e-auction was conducted on the directions of the National Company Law Tribunal (NCLT) at a reserved price of Rs 1,061 crore on a going concern basis, according to a regulatory filing by the company secretary.

"...e-auction notice dated July 24, 2023 made pursuant to Asset Sale Process Memorandum (ASPM) for the second e-auction- Punj Lloyd Ltd (in liquidation), announcing the sale of Punj Lloyd Ltd at the Reserve Price of Rs 1,061 crore ongoing concern basis undergoing liquidation pursuant to order dated May 27, 2022 of NCLT, New Delhi, Principal Bench, has failed to attract any bidder," the filing said.

In July, Punj Lloyd had failed to get any buyer in the first round of e-auctions conducted by its liquidator.

A reserve price of Rs 1,061 crore was fixed for Punj Lloyd during the auction, on a going concern basis, but it did not attract any bidders. Following this, a second round of e-auction was conducted.

Last year in June, the NCLT directed the initiation of liquidation of Punj Lloyd after its lenders could not find a buyer and rejected the revival plan submitted by a consortium of Prudent ARC and Payard Investments.

A corporate insolvency resolution process was initiated against Punj Lloyd on the plea of private sector lender ICICI Bank in 2019.