STANDARD FORM
EXPRESSION OF INTEREST
Date: _____________
To,
IDBI Bank Limited,
[●]
Subject: Expression of Interest (“EOI”) for Change in Ownership and Management Control
Dear Sir/Madam,
In response to your public advertisement in [Insert the names of the newspaper and/or website]
on [Insert date of the advertisement] inviting EOIs for Change in Ownership, we hereby submit
our EOI.
We have attached necessary information according to the standard form. The information
furnished by us in this EOI is true, correct and accurate to the best of our knowledge. Based on
this information we understand you would be able to evaluate our preliminary proposal in
order to pre-qualify for the above mentioned proposal.
We however, understand that IDBI Bank Limited reserves their right to decide whether or not
to pre-qualify our proposal without disclosing the reason whatsoever.
Sincerely yours,
On behalf of the firm/company/organization:
Signature: ________________________
Name of signatory:
Designation:
Company Seal/stamp
Annexure
1.1 Name and address
Name of the Bidder :
Address:
Telephone No:
Fax:
Email:
1.2 Date of establishment of Bidder/Promoter Group:
1.3 Core area of expertise of the Bidder:
1.4 Contact Person:
Name:
Designation:
Telephone No:
Email:
1.5 CIN/VAT/PAN or equivalent details of Bidder:
CIN NO:
VAT No:
PAN No:
1.6 Supporting Documents:
A) For Turnover: 3 (three) years audited financial reports of the interested party or its
promoter/promoter group or any other group company as per the qualification criteria.
B) For Existence/Incorporation : Relevant constitutional document(s) to prove 5 (five) years
of existence as on April 1, 2016.
C) For Demonstration of funds availability : Relevant statement of funds availability of the
interested party or its promoter/promoter group or any other group company as per the
qualification criteria
D) A notarized declaration from the interested party in order to demonstrate that the
promoter/promoter group or any other group company are part of the same group, in case the
interested party is using such entities for meeting the qualification criteria.
1.7 Bidder Profile, if any:
1.8 Legal Documents:
[Provide copy of the legal registration, CIN, VAT and PAN registration certificates of the firm,
with their latest renewals, wherever applicable]
Invitation for Expressions of Interest (EOI) for
taking
over
a
Company
engaged
in
Manufacturing of Steel Wheel Rims for
Commercial, Passenger and Agricultural
vehicles.
IDBI Bank Limited (“IDBI”), on behalf of itself and the other consortium lenders (including
various banks and financial institutions) that have extended certain working capital and term
loan facilities to a limited company (“Company”) for operating into Manufacture of Steel
wheel rims for commercial, passenger and agricultural vehicles & Automobile body panels
business, proposes to undertake change in ownership of the Company in accordance with the
Prudential Norms on Change in Ownership of Borrowing Entities (under Strategic Debt
Restructuring Scheme) dated June 08, 2015.
The company is the largest single location Steel Wheel Rim manufacturing plant in India. It has
a state-of-art integrated manufacturing facility at Bhuj, Gujarat spread over 60 acres area. It is
located in close proximity to two major ports, Kandla and Mundra. In a short span of time, it
has developed reputed clientele base of many leading OEM’s in passenger cars, LCVs, Trailers,
trucks and agriculture tractors domestically and in export market. The company’s Net Block as
on March 31, 2015 was around Rs.934 crore.
The current outstanding amount of the Company, against such loans, as on January 31, 2016
was around Rs.423 Crore (including interest overdue) and the Company is currently under
financial distress.
IDBI invites Expressions of Interest from interested parties who fulfill qualification criteria and
who may be willing to acquire a minimum of 51% (fifty one percent) equity shareholding and
management control in the Company. Preference would be given to the buyer who is currently
into similar line of activity/industry.
For details regarding qualification criteria and other information, please refer to Annexure 1.
Interested parties may submit their EOI along with supporting documents latest by May 21,
2016, IST 18.00 by hand delivering/courier it to DGM & RM, IDBI, CBG I, IDBI Tower, 5th
Floor, Plot No. C 7, G Block, BKC, Opposite NSE, Bandra (E), Mumbai–51.
For any clarifications, please contact IDBI, DGM & RM Shri. M V Apparao, Contact No: 02261279333, Email ID: [email protected], IDBI, CBG I, IDBI Tower, 5th Floor, Plot No. C
7, G Block, BKC, Opposite NSE, Bandra (E), Mumbai – 400 051.
Note:
1) IDBI reserves the right to cancel or modify the process without assigning any reason and
without any liability. This is not an offer document and is issued with no commitment.
Applicants should regularly visit the IDBI website at www.idbi.com to keep themselves updated
regarding clarifications/ amendments/ time-extensions, if any.
2). IDBI Bank reserves the right to withdraw EOI and change or vary any part thereof at any
stage and also reserves the right to disqualify any bidder, should it be so necessary at any
stage.
3) No oral conversations or agreements with any official, agent or employee of IDBI Bank shall
affect or modify any terms of this EOI.
4) Neither the bidder nor any of the bidder’s representatives shall have any claims whatsoever
against IDBI Bank or any of their directors, officials, agents or employees arising out of or
relating to this EOI.
5) By submitting a proposal, each bidder shall be deemed to acknowledge that it has carefully
read the entire EOI and has fully informed itself as to all existing conditions and limitations.
6) The proposal and all correspondences and documents shall be written in English.
ANNEXURE -1
1. CRITERIA FOR QUALIFICATION
1.1 Eligibility and Qualifying Criteria
Financial Proposals of only those interested parties who meet the qualifying criteria (business
and financial) specified in subsequent sections in this terms of expression of interest will be
considered. Expressions of Interest (“EOIs”) which do not meet these criteria shall be rejected.
The interested party’s competence and capability is proposed to be established by the following
parameters:
a. Business Capacity; and
b. Financial Capacity
1.2 Business Capacity for purposes of evaluation will be based on following criteria :
1.2.1 Turnover: The interested party is required to have an average turnover of at least Rs.
500 Crore (Rupees Five Hundred Crore only) or more based on last available audited
financial statements of immediately preceding 3 financial years.
Turnover would mean Gross Income or Gross Revenue.
For the purposes of qualifying under Turnover criteria, combined Turnover based on audited
financial reports of preceding 3 (three) financial years of the interested party and /or its
promoter/promoter group and any other group company may be used.
The audited financial statements for the relevant periods and entities need to be provided
along with EOIs for supporting the same.
1.2.2 Incorporation/Existence: The interested party or its promoter/promoter group or any
other group company on whose Turnover the interested party is relying upon shall have been
in existence for atleast 5 (five) years as on April 1, 2016.
The memorandum of association, articles of association, certificate of incorporation and
other constitutional document(s) need to be provided along with EOI for supporting the same.
1.3 Financial Capacity Evaluation
The interested party must fulfill following minimum financial requirements:
Demonstration of ability to infuse funds
The interested party must demonstrate its ability to infuse atleast Rs.50,00,00,000 (Rupees
Fifty Crores Only) into the Company as Equity Capital and another Rs.75,00,00,000 (Rupees
Seventy Five Crores Only) into the Company as Unsecured/Promoter long term loan
repayable in line with lenders at minimum rate of interest, to the satisfaction of IDBI, by
providing requisite supporting documents that showcase availability of funds with the
interested party.
For the purpose of demonstration of availability of funds, the supporting documents of the
interested party and /or its promoter/promoter group and any other group company can be
used.
1.4 Exchange Rate
For the purpose of evaluation of the EOI, the exchange rate to be used for conversion into INR
(Indian Rupees) shall be the mean of the buying and selling rate quoted by IDBI on the closing
working day that precedes the date of the EOI