JM Financial ARC Emerges as Top Bidder for Rs 971 Crore Debt of Distribution Logistics Infrastructure
New Delhi, May 27, 2026 — JM Financial Asset Reconstruction Company (ARC) has been declared the preferred bidder to acquire the Rs 971-crore outstanding debt of Distribution Logistics Infrastructure Pvt Ltd (DLI), according to sources familiar with the development. The ARC’s cash bid of Rs 621 crore represents a recovery rate of approximately 64% for the consortium of lenders headed by Bank of Baroda (BoB).
Background and Bidding Process
DLI’s debt had been put up for sale by lenders following the failure of an earlier attempt to settle the dues via a one-time settlement offer from the company’s promoters. The promoters had proposed a Rs 590-crore settlement in October last year but did not make the mandatory 10% earnest money deposit (EMD), prompting lenders to launch the asset sale process anew in April 2026. JM Financial ARC has already paid the 10% EMD, marking their serious intent as the anchor bidder. The sale process is being conducted through a Reserve Bank of India-mandated Swiss auction system. This means that other interested bidders can submit counteroffers, but their bids will need to exceed Rs 655 crore to challenge JM Financial ARC’s current offer. Furthermore, JM Financial ARC holds the right to match any higher bids submitted by challengers.
Lender Consortium and Debt Details
Bank of Baroda is the largest creditor, holding an estimated 42% of the total debt. The other key lenders involved include Punjab National Bank, Union Bank of India, Bank of India, and State Bank of India. Together, these banks are poised to recover around 64% of their dues if the current bid is accepted.
A source close to the matter indicated that JM Financial ARC might be bidding in partnership with a prominent steel-to-automobile conglomerate, which is simultaneously expanding its logistics operations—a strategic alignment that could potentially add value in managing and growing the acquired asset.
Potential Challenges and Ongoing Proceedings
The process is expected to take additional time before final closure, as lenders remain cautious. The same source indicated the possibility that the promoters of DLI might legally challenge the asset sale process in court. The case has also been admitted by the National Company Law Tribunal (NCLT), adding a layer of judicial oversight to the proceedings.
Lenders are reportedly ensuring all regulatory and legal precautions are in place before inviting challenging bids and finalizing the transaction.
Industry Context
The acquisition of stressed assets like DLI’s debt is part of ongoing efforts by banks and asset reconstruction companies to clean up balance sheets and recover dues from non-performing assets (NPAs). Such recoveries help improve lenders’ capital positions and enable healthier lending activity in the economy.
JM Financial ARC’s position as anchor bidder in this high-value asset underscores its increasing role in the distressed asset market, leveraging partnerships and strategic bids to acquire and manage stressed loans.
For further updates on the DLI debt resolution process and related market movements, stay tuned to The Economic Times.