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.