NARCL to Acquire ₹1,000 Crore Debt of Kay Bouvet Engineering
The government-backed National Asset Reconstruction Company Limited (NARCL) is set to take over the ₹1,000 crore debt of specialized equipment manufacturer Kay Bouvet Engineering.
By : PSUDesk
Update: 2026-03-29 07:08 GMT
MUMBAI – The government-backed National Asset Reconstruction Company Limited (NARCL) is set to take over the ₹1,000 crore debt of specialized equipment manufacturer Kay Bouvet Engineering. The acquisition follows a Swiss challenge auction where NARCL’s ₹130 crore bid received no competing offers.
The deal represents a 13% recovery for the lender group, led by IDBI Bank. Under the agreed terms, banks will receive 15% of the value in upfront cash, with the remaining 84% issued as security receipts.
Strategic Importance of Kay Bouvet:
- Sector Focus: Heavy engineering for strategic industries, including defense, space, and nuclear energy.
- Infrastructure: Operates two major manufacturing facilities in Maharashtra and Haryana.
- Fiscal Milestone: This transaction is expected to be NARCL’s final acquisition for the 2025–26 financial year.
The transition marks a significant step in cleaning up stressed assets within India's strategic manufacturing sector before the fiscal year-end.