Edelweiss sheds distressed assets ahead of EAAA India Alternatives IPO

Synopsis

The group has exited a number of long-stuck credit exposures, including Vatika, Adhunik Metaliks, and now BILT Graphic Paper Products (BGPPL), people aware of the development said.

Mumbai: Edelweiss Group is offloading distressed assets of its asset restructure company even as discussions around the initial public offering (IPO) of its alternative asset management arm EAAA India Alternatives (EAAA) gains steam. EAAA was formerly called Edelweiss Alternative Asset Advisors.

The group has exited a number of long-stuck credit exposures, including Vatika, Adhunik Metaliks, and now BILT Graphic Paper Products (BGPPL), people aware of the development said.

It is seen as a strategic move to de-risk its balance sheet ahead of the proposed ₹1,500-crore IPO of EAAA, which is expected to launch in late 2025. The company is looking to re-submit the draft red herring prospectus (DRHP) for its IPO by end June. Edelweiss's asset reconstruction and asset management businesses, particularly in alternative assets, are its key profit drivers.

Recently, the group named Amit Agarwal and Subahoo Chordia as co-CEOs of EAAA. In a major clean-up move, Edelweiss ARC has exited BGPPL. Backed by Kotak Alternate Asset Managers and Allianz Global Investors, BGPPL raised ₹3,100 crore in rupee bonds, using funds to repay ₹3,000 crore to Edelweiss ARC. In April, ARC exited Adhunik Power & Natural Resources, recovering ₹1,250 crore after Davidson Kempner extended ₹1,400-crore loan.

Together, the recoveries from BGPPL and Adhunik top ₹4,000 crore this financial year itself.

Other recoveries include Vatika Hotels, repaid by promoters, and Century Developers, whose debt is being partly refinanced by Ares SSG.

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