Consortium of three power cos acquires Karvy Data Management Services for Rs 159 crore
The consortium of Sangamam Power Projects Private Limited, Sirmour Small Hydro Power Private Limited and Sharp Ventures Private Limited has successfully won the bid for Hyderabad-based Karvy Data Management Services Ltd. The Hyderabad-based National Company Law Tribunal (NCLT) has approved the consortium’s resolution plan for a resolution amount of Rs 158.56 crore. The Committee of Creditors (CoC) has earlier approved the resolution plan with 85.29% voting share.
As per the resolution plan, secured financial creditors of Karvy Data Management Services will receive an amount of Rs 81 crore, 23% of their total admitted claims of Rs 353 crore. Unsecured financial creditors will receive Rs 51 crore against their admitted claims of Rs 686 crore. Operational creditors will receive Rs 26 crore.
As per the schedule of payments, the successful resolution applicant will make an upfront payment of Rs 5 crore for CIPR cost and other regulatory payments. Rest of the amount will be paid in 4 tranches. The first tranche of Rs 35 crore will be made after five months, the next Rs 40 crore will be paid in 12th month. Another Rs 40 crore will be paid in the 18th month and the rest of the Rs 38.56 crore will be paid in the 24th month.
The corporate insolvency resolution process (CIRP) against Karvy Data Management Services were started by Allied Hi-Tech Industries Private Ltd in September 2023 after Karvy defaulted on a payment of Rs 18.63 crore. This was the second time CIRP was started against Karvy, the first one being started by Adventity Global in November 2021, which was later withdrawn in 2022.
The Successful Resolution Applicant is a consortium of Three (3) entities — Sangamam Power Projects Private Limited (Lead Member), Sirmour Small Hydro Power Private Limited and Sharp Ventures Private Limited. The lead member of the consortium — Sangamam Power Projects Private Limited — was incorporated in 2008 by Mr. K Sitaram Reddy and Mr. BV Reddy with a view to venture into power sector opportunities and is engaged in the business of Design, Engineering, Construction, Development, Operation and Maintenance of Renewable Energy Projects and provide Engineering, Procurement & Construction (EPC) services.
Sirmour Small Hydro Private Limited is engaged in the business of design, engineering, constructions etc. Sharp Ventures Private Limited is a private limited Company engaged in the business of thermal power plants, hydraulic power plants and other power plants.
While the Consortium has surplus fund for the purpose of upfront fund proposed in the Resolution Plan, the Consortium has also reached out to IDBI Capital Markets & Securities Limited to raise any debt if required in future.
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