In a significant development for SJ Logistics , the company's promoters, led by Nikhil Gandhi, have made a compelling offer to settle the firm's outstanding debt. The proposal, which surpasses a recent bid from Prudent Asset Reconstruction Company (ARC), could potentially resolve SJ Logistics' financial obligations to its lenders.

Key Points of the Offer

• Settlement Amount: The promoters have proposed ₹472.00 crore as a one-time settlement.
• Total Debt: SJ Logistics' current debt stands at ₹590.00 crore.
• Lead Lender: Canara Bank heads the consortium of lenders.
• Competing Bid: Prudent ARC had previously bid ₹460.00 crore through a Swiss challenge auction.

Background of the Negotiation

The debt resolution process for SJ Logistics has seen several developments:

1. Initial Offer: Nikhil Gandhi initially proposed ₹430.00 crore for debt settlement.
2. Swiss Challenge Auction: This offer was put through a Swiss challenge auction, inviting counteroffers to maximize recovery for lenders.
3. Prudent ARC's Bid: During this process, Prudent ARC emerged with a bid of ₹460.00 crore.
4. Promoters' Counter: In response, SJ Logistics' promoters have now increased their offer to ₹472.00 crore, outbidding Prudent ARC.

About SJ Logistics

SJ Logistics operates a strategic port and logistics facility located at Karanja Creek in Navi Mumbai. The company's assets benefit from:

• Good connectivity to major highways
• Proximity to Jawaharlal Nehru Port Trust (JNPT)
• Close distance to Mumbai Port

These geographical advantages position SJ Logistics as a potentially valuable asset in the logistics and port operations sector.

Implications of the Offer

If accepted, the promoters' offer would result in a settlement of approximately 80% of the total debt. This proposal represents a significant effort to retain control of the company while addressing its financial obligations. The outcome of this offer could have important implications for SJ Logistics' future operations and financial stability.

As the situation develops, stakeholders will be closely watching the response from the lender consortium led by Canara Bank. The decision will not only impact SJ Logistics but could also set a precedent for similar debt resolution cases in the infrastructure and logistics sectors.

SJ Logistics has achieved a significant milestone in its business operations by gaining approval as a logistics service provider for Steel Authority of India Limited (SAIL), one of India's largest state-owned steel-making companies. This development marks the beginning of a new business relationship between the two entities, with SJ Logistics poised to offer its logistics expertise to SAIL.

New Business Opportunity

The approval of SJ Logistics as a service provider for SAIL opens up new avenues for growth and expansion in the logistics sector. This partnership is expected to enhance the logistics capabilities of SAIL, potentially streamlining its supply chain operations.

Implications for SJ Logistics

For SJ Logistics, this approval represents a notable achievement:

• Prestigious Client: Securing SAIL as a client adds a reputable name to SJ Logistics' portfolio, potentially boosting its credibility in the industry.
• Business Growth: The partnership with a major player like SAIL could lead to increased business volume and revenue for SJ Logistics.
• Sector Expertise: This approval may further solidify SJ Logistics' position in the steel and heavy industries logistics segment.

About SAIL

Steel Authority of India Limited (SAIL) is one of the largest steel-producing companies in India and a central public sector undertaking. The company plays a crucial role in India's steel production and infrastructure development.

While specific details of the logistics services to be provided have not been disclosed, this collaboration between SJ Logistics and SAIL is likely to contribute to the efficiency of SAIL's operations. As both companies move forward with this new business relationship, it will be interesting to observe the impact on their respective performances.

Investors and market watchers may want to keep an eye on future announcements from SJ Logistics regarding the scope and scale of services to be provided to SAIL, as well as any potential impact on the company's financial performance.