Kirloskar Ferrous Industries Limited (BSE:500245) has submitted a INR 6.7 billion nonbinding offer to the lenders of ISMT Limited (BSE:532479), three people with the knowledge of the matter. The non-binding offer equates to INR 0.20 on INR 1 on total loans including the interest component. ISMT had a term loan of INR 33.59 billion including interest as of June 30, 2020, according to a disclosure made by the company to the Bombay Stock Exchange.

Lenders have appointed Desai Saksena & Associates (DSA), a legal firm, for the sale process. The legal firm has set a reserve price of INR 6.7 billion based on the non-binding offer received from Kirloskar Ferrous, according to a notice uploaded by DSA on its website. The legal firm has invited expressions of interest by November 1, 2021 and firm bids by November 15, 2021 for assignment of debt from asset reconstruction companies and alternate investment firms, according to the same notice.

After receiving firm offers, lenders may hold a Swiss challenge auction, one of the persons quoted above said.