IFCI Plans to Sell ₹869 Crore in ACCIL Bad Loans via Swiss Auction

State-owned financial institution IFCI has initiated the sale of non-performing assets worth ₹869 crore belonging to Asian Colour Coated Ispat Limited (ACCIL), as per news reports. The lender has received an initial anchor bid of ₹50 crore, which reflects a potential recovery of just 5.75%. 

IFCI will now invite counter-bids to maximise recovery through a Swiss challenge process scheduled later this month.

Swiss Challenge Process and Timeline

As per news reports, the Swiss challenge auction will be held on September 26, with interested entities required to submit Expressions of Interest (EoIs) by September 9. The bids must be placed on a 100% cash basis.

If no counter-bids are received by the deadline, the anchor bid of ₹50 crore will be declared the winning offer. However, in case challenger bids emerge, the anchor bidder will retain the right to match the highest competing offer, which IFCI will then prefer and accept.

Collateral and Background of ACCIL

To safeguard its exposure, IFCI holds exclusive mortgage rights over the 78-room ‘Park Plaza’ hotel property in Faridabad, owned by ACCIL Hospitality, along with escrow rights on the hotel’s cash flows, corporate guarantees, and personal guarantees from directors Vikas Aggarwal and Pradeep Aggarwal. 

ACCIL, which operates a cold rolling mill complex producing galvanised, colour-coated, and cold rolled steel products for sectors like automobiles and white goods, was part of the Reserve Bank of India’s second list of 28 defaulters referred to insolvency courts.

The company had total outstanding dues of around ₹5,000 crore. In October 2020, JSW Steel acquired ACCIL through its wholly owned subsidiary, JSW Steel Coated Products, for over ₹1,550 crore under the Insolvency and Bankruptcy Code (IBC) resolution process.

Read More: ITR Deadline Approaches: Last 8 days to file your ITR for FY 25!

IFCI Share Price Performance 

As of September 08, 2025, 2:39 PM, IFCI share price is trading at ₹53.28 per share, reflecting a surge of 1.62% from the previous closing price.

Conclusion

IFCI’s decision to put ACCIL’s loans on sale highlights the lender’s attempt to recover value from long-standing stressed accounts. The outcome of the Swiss challenge auction will determine whether IFCI improves upon the anchor bid or settles for a steep haircut.

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