US-primarily based Oaktree on Monday pipped Piramal Enterprises and Adani Group to emerge as the highest bidder for DHFL right after fresh bids had been invited below the insolvency procedure, according to sources.
The committee of creditors had fixed December 14 as the final for submission of revised bids.
According to the sources, Oaktree raised the bid to Rs 36,646 crore, such as Rs 1,000 crore for insurance coverage and Rs 3,000 crore of interest earned, whilst Piramal Enterprises provided Rs 35,550 crore, such as Rs 300 for insurance coverage and Rs 3,000 of interest earned.
However, the sources stated, Oaktree has produced a conditional present for DHFL.
Billionaire Gautam Adani’s roads-to-mining group has enhanced its bid to Rs 33,one hundred crore for taking more than housing lender DHFL, they stated, adding this contains Rs 250 crore for insurance coverage and Rs 3,000 of interest earned.
Adani Group, which had initially bid only for DHFL’s wholesale and Slum Rehabilitation Authority (SRA) portfolio, in the revised bid submitted on November 17 provided Rs 30,000 crore plus interest of Rs 3,000 crore for the complete book, an official in lenders consortia had stated.
In November final year, the Reserve Bank referred Dewan Housing Finance Limited (DHFL), the third-biggest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.
DHFL was the initial finance firm to be referred to the NCLT by the RBI employing particular powers below section 227.
Prior to that, the company’s board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution expert below the Insolvency and Bankruptcy Code (IBC).
As of July 2019, the firm owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders.
DHFL was sent to bankruptcy right after the government on November 15, 2019, enabled the Reserve Bank to sent significant economic services firms, excluding banks, to the NCLT for insolvency proceedings.
Its significant lenders incorporate State Bank of India (such as 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 had been 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, such as SRA loans, stood at Rs 42,860 crore, of which a whopping Rs 39,690 crore or 92.61 per cent of the complete portfolio is categorised as gross NPAs.