Syska LED insolvency draws four bidders, including promoter and Mutares Group
Four parties, including the promoter and Germany's Mutares Group, have shown interest in acquiring Syska LED Lights, which has admitted claims of ₹226 crore. Lenders are scrutinizing bids due to a lack of formal board authorization from one applicant. The resolution process is advanced, with lenders anticipating over 50% recovery.
Mumbai: The insolvency resolution process of Syska LED Lights has attracted interest from four parties-the company's promoter, Germany-based turnaround investor Mutares Group, Aikyam Stressed Asset Fund and Cyfuture India, people familiar with the matter said.
Lenders to Syska, once a leading name in LED production, have raised concerns over the validity of some of the bids due to the absence of formal board authorisation.
Syska LED has admitted claims of around ₹226 crore. State Bank of India is the largest lender with exposure of about ₹77 crore, followed by Union Bank of India, HDFC Bank, IndusInd Bank and Pheonix ARC.
"Four resolution applicants have shown interest for Syska LED, which has admitted claims of about ₹226 crore," said a source.
"Documents have been shared electronically, but there is no board-approved authorisation from one of the bidders," said the source. "At this stage, this is unusual and could become a disqualifying issue if not resolved."
Spokespersons of SBI, promoter and resolution professional did not respond to request for comment. A Mutares spokesperson declined to comment. The resolution process, which started in October 2024, has also attracted a bid from the company's promoter under the MSME provisions of the Insolvency and Bankruptcy Code, which allow promoters of eligible micro, small and medium enterprises to participate. Bankers said promoter participation is often seen as positive in MSME cases.
The other two bidders are domestic entities. The process is at an advanced stage, with a second round of bids under way. Lenders expect recoveries to exceed 50% of admitted claims, subject to final negotiations and approval by the committee of creditors.
Once a leading consumer lighting brand, Syska LED ran into financial stress due to intense competition, margin pressure and working capital constraints. The resolution professional is expected to place compliant plans before lenders after documentation issues are addressed, with the process likely to conclude in the coming months.
The company is engaged in trading and manufacturing of LED Lights, personal grooming products, irons, fans and home wires under the brand name of SYSKA and has its factories in Rabale and Chakan in Maharashtra.