NARCL may bid ₹900 cr for Videocon Oil

The National Asset Reconstruction Company Limited (NARCL) is set to bid approximately ₹900 crore to acquire the stressed debt of Videocon Oil Ventures Limited (VOVL), which has been under insolvency since 2019. This move comes as part of a larger effort to resolve significant non-performing assets in the Indian banking sector, with VOVL carrying total admitted claims of around ₹30,640 crore, including interest. The Videocon group, once a prominent player in oil and gas exploration, faced insolvency following a massive debt crisis affecting its parent company. NARCL has been in discussions with lenders for nearly six months, overcoming valuation disputes and complex legal structures tied to VOVL’s overseas operations. The bid structure proposed by NARCL includes 15% payment in cash and the remainder in security receipts, supported by a government guarantee to mitigate potential losses. This acquisition would enhance NARCL's portfolio of distressed assets, aligning with its goal to manage around ₹2 lakh crore in stressed loans. As of March 2025, NARCL has already handled ₹1.6 lakh crore in debt, indicating its active role in addressing the challenges posed by non-performing assets in India’s financial landscape.