Alchemist acquires Non-Performing Loans from Banks or Financial Institutions across the country on a bilateral basis or by participating in an auction process.
- We identify and filter non-performing assets which have good recovery potential through evaluating Preliminary Information Memorandums (PIM) which are provided by the Bank. In case of bilateral deals we identify transactions through market intelligence which have the potential to generate high returns.
- After initially short listing deals on the basis of our investment criteria, we conduct a rigorous analysis and research process. At this stage we conduct a legal and financial due diligence of the financial account, site visits, and valuation of the underlying assets. We additionally mandate the top legal firms, chartered accountants and property consultants to conduct this exercise.
- The acquisition team analyses the information obtained and evaluates the investment rationale and selects only the most promising transactions and prepares the Investment Thesis.
- The Asset Acquisition and Resolution Committee then evaluates the Investment thesis and approves the acquisition if they are satisfied with the Investment rationale.
- The team then makes a bid to the Bank; the Bank may declare the bid to be successful or may negotiate between interested parties to achieve a higher price.
- After the Bank agrees on the price, the acquisition formalities are conducted which include execution of an assignment agreement and issuance of an offer document.