INDUSIND BANK SELLS VASAN LOANS TO EDELWEISS

IndusInd Bank, the largest lender to troubled Vasan Healthcare Pvt Ltd, has sold its entire exposure in the firm to Edelweiss Asset Reconstruction Co. (EARC), two people aware of the development said on the condition of anonymity. The transaction was confirmed by EARC although it did not disclose the financial details or the percentage of Vasan’s loans bought.

“Edelweiss ARC has bought a small share in debt from IndusInd bank in a portfolio,” an EARC spokesperson said in response to a query. An email sent to IndusInd Bank remained unanswered till the time of going to press.

“With this, the efforts to find a buyer for Vasan has ended as far IndusInd Bank is concerned,” said one of the two people cited above.

IndusInd Bank, which owned the largest chunk of Vasan Eye Care’s ₹1,100 crore outstanding loans, was on the lookout for a buyer to take over majority control of the company,” said the first person. “While a number of potential buyers were interested, the deal did not close given the controversies surrounding Vasan Eye Care,” said the person.

Two of Vasan’s minority investors—PE funds Sequoia Capital and Westbridge Capital — are under investigation by the Enforcement Directorate (ED) for their respective investments in the company. The charges are being contested by both PE funds.

According to the persons cited above, the lenders were seeking a valuation of close to ₹1,500 crore for the eye care chain, which is roughly 15 times its ebitda, and were in separate talks with two global PE funds initially. However, both firms backed out later citing the ongoing regulatory issues faced by the company.

According to the results with the Registrar of Companies, Vasan Healthcare incurred a loss of ₹50.3 crore against revenue of ₹728 crore for FY14.

In March, EARC bought loans worth ₹5,000 crore of 14 companies at close to Rs2,200 crore. It is also among the shortlisted bidders to buy a controlling stake in Uttam Galva Steels Ltd.