Punj Lloyd fails to attract any buyer in first round of e-auction

New Delhi: Debt-ridden engineering, procurement and construction company Punj Lloyd, which is facing liquidation, 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 bidder. Last year in June, the National Company Law Tribunal (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 meeting of the stakeholders' consultation committee (SCC) of Punj Lloyd Ltd was held on July 11, 2023, during which the liquidator informed about the developments and the outcome of the auction process, according to regulatory updates. "The liquidator of the company informed the SCC members that the first round of e-auction announcing the sale of Punj Lloyd Ltd (company) at the reserve price of Rs 1,061 crore on a going concern basis has failed to attract any bidder," it said.

In the meeting, the liquidator also apprised the SCC regarding other developments in the liquidation process. A corporate insolvency resolution process was initiated against Punj Lloyd on the plea of private sector lender ICICI Bank in 2019