Nakoda Surat yarn plant back on the block at ₹68.45 crore, well below last year’s ₹167-crore ask
The liquidator of Nakoda Ltd, the Surat-based polyester yarn maker being wound up under the Insolvency and Bankruptcy Code (IBC), has scheduled a fresh e-auction of the company’s Surat plant for October 28, with a reserve price of ₹68.45 crore for the entire facility.
According to a public notice issued by liquidator Ravindra Kumar Goyal, the auction will run from 1 pm to 3 pm on the BaankNet platform, with unlimited five-minute extensions. Prospective bidders must file pre-qualification documents and submit earnest money deposits (EMD) by October 26.
The assets are offered in four blocks under Regulation 32 of the IBBI (Liquidation Process) Regulations, 2016:
| Block | Asset | Reserve price (₹) | EMD (₹) | Bid increment (₹) |
| A | Entire Surat plant at Village Karanj, Mandvi (land, building, plant & machinery) plus a flat in Surat; land 51,853.05 sq m | 68,45,48,724 | 3,42,27,436 | 50,00,000 |
| B | Phase-2 yarn manufacturing plant (land, building, P&M); land 13,209.27 sq m | 34,81,65,028 | 1,74,08,251 | 10,00,000 |
| C | Old plant, Phase-1 (land and building); land 38,553.78 sq m | 33,49,88,695 | 1,67,49,435 | 10,00,000 |
| D | Flat at Surat | 13,95,000 | 69,750 | 50,000 |
The notice states that if a successful bid is received for Block A, the auctions for Blocks B, C and D will be cancelled automatically. The sale is on an “as is where is, as is what is, whatever there is and without recourse” basis.
Steep fall in asking price
The reserve price marks a sharp drop from earlier rounds. An IBBI filing for the March 31, 2025 auction listed a reserve price of ₹167.12 crore for the entire factory premises, plant and machinery and flat in Surat. For the July 28, 2025 round, the company was offered as a going concern, including all assets and liabilities except cash and bank balances, at a total reserve price of ₹167 crore.
At ₹68.45 crore, the current Block A reserve is about 59% lower than the 2025 going-concern price. The two packages are not strictly comparable, though: earlier notices also included nine windmills and a separate chips manufacturing plant at Surat, which do not appear in the current notice. The company has gone through at least six auction notices since December 2024.
Background
Insolvency proceedings against Nakoda were initiated on a Section 7 application filed by financial creditor Canara Bank. The insolvency commencement date was July 12, 2021, and liquidation commenced on February 8, 2023, following an order of the Ahmedabad bench of the National Company Law Tribunal.
Also See: Rankini Power puts itself up for bids a fourth time; SREI’s ₹1,439-crore claim at stake
Discover more from Insolvency Tracker
Subscribe to get the latest posts sent to your email.
1 thought on “Nakoda Surat yarn plant back on the block at ₹68.45 crore, well below last year’s ₹167-crore ask”