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Adani, Piramal, Others Revise Offers For DHFL
Adani Properties has also raised its bid for the wholesale and Slum Rehabilitation Authority (SRA) assets to Rs 3,000 crore from Rs 2,200 crore earlier. It has also offered Rs 50 crore for the slum redevelopment book,
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Suitors for the troubled non-banking finance company Dewan Housing Finance Corporation (DHFL) have raised their offer price in the revised bids submitted for the company, sources said.
Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy have submitted 10-70 per cent higher price for either a stake in the company or buying out some of its assets.
Oaktree Capital has raised its bid price for the entire portfolio to Rs 33,000 crore from Rs 27,800 crore earlier, sources with knowledge of the development said.
Piramal has significantly revised its bid for the retail book to Rs 26,500 crore from Rs 15,000 crore offered earlier.
Adani Properties has also raised its bid for the wholesale and Slum Rehabilitation Authority (SRA) assets to Rs 3,000 crore from Rs 2,200 crore earlier. It has also offered Rs 50 crore for the slum redevelopment book, they said.
SC Lowy has upped its bid for the non-SRA book to Rs 2,300 crore from Rs 1,550 crore earlier.
The new bids have been submitted after the lenders asked the bidders to revise their offer.
DHFL promoter Kapil Wadhawan had proposed to transfer the rights, title and interest in at least 10 projects valued at Rs 43,879 crore and settle the dues with banks. Wadhawan has written to the Reserve Bank of India-appointed administrator Subramaniakumar saying that their offer would ensure maximum value for the assets that have been put on the block.
Promoters hold about 39.21 per cent stake in DHFL. Bankers want promoters' stake to fall below 10 per cent after the stake sale as part of the resolution plan.
A Committee of Creditors, overseeing the resolution plan, is expected to meet next week to finalise the bidder.
The CoC was hoping to finalise the resolution plan by November 16 before it could send it to the RBI for review.
Last month, the National Company Law Tribunal (NCLT) had allowed 90 days extension for the resolution process till January 5.
Sources said both Oaktree Capital and the Piramal Group's offers factor in a little under Rs 10,000 crore cash from DHFL's books.
Currently, DHFL has cash of almost Rs 8,000 crore on its books, which is expected to rise to Rs 10,000 crore by March - and this entire amount would be used to repay lenders as per the plans submitted so far.
DHFL's liquidation value is expected to be around Rs 25,000 crore, and the earlier offers were not significantly higher than the amount, prompting lenders to call for revised bids.
With the current offers, lenders may recover over 35 per cent of the debt, they said.
DHFL is the first financial services company which has been sent to NCLT under the insolvency and bankruptcy code (IBC).
DHFL is facing claims of Rs 87,031 crore from financial creditors.
Its large lenders include State Bank of India (including SBI Singapore) with Rs 10,083 crore exposure, Bank of India Rs 4,125 crore, Canara Bank Rs 2,681 crore, NHB Rs 2,434 crore, Union Bank of India Rs 2,378 crore, Syndicate Bank Rs 2,229 crore and Bank of Baroda Rs 2,075 crore, Indian Bank Rs 1,552 crore, Central Bank Rs 1,389 crore, IDBI Bank Rs 999 crore, and HDFC Bank Rs 361 crore.
DHFL had total assets amounting to Rs 79,800 crore as of March 2020, as per its annual report. Of these, Rs 50,227 crore of assets forming 63 per cent of the total portfolio were reported as non-performing assets (Gross NPAs). Of this, its retail book stood at Rs 33,500 crore, with gross NPAs of Rs 7,147 crore forming 21.32 per cent of the total portfolio.
The wholesale book, including SRA loans, stood at Rs 42,860 crore, of which a whopping Rs 39,690 crore or 92.61 per cent of the entire portfolio is categorized as gross NPAs.