Piramal Capital and Housing Finance on Friday mentioned its bid for DHFL delivers the highest upfront money recovery, and has the highest score according to the evaluation matrix.
In a point-by-point rebuttal to the charges levelled by competitor Oaktree Capital, Piramal mentioned the extra quantity provided by Oaktree post bid date is patently ‘illegal’. The US-primarily based investment firm had earlier written a letter to the committee of creditors on the bidding approach. Oaktree mentioned its supply was getting undervalued by Rs 2,700 crore by the lenders, providing an upper hand to Piramal. The voting on DHFL bids will conclude on January 15.
Piramal highlighted that it had formally submitted a final bid inside the deadline, even though Oaktree sent an extra supply immediately after the deadline supplying Rs 1,700 crore more. After opening of the bids on December 23, recognising that its bid falls severely quick, Oaktree sent an e-mail on December 24 (2 days immediately after deadline), supplying an extra Rs 1,700 crore, Piramal mentioned. “ ‘Reserving the right’ in a bidding framework is blatantly illegal and mischievous – if this were to be allowed; everyone will bid Re 1 for all assets, ‘reserve’ the right to increase, look at other bids and increase to slightly more than the highest bid,” Piramal mentioned in a release.
Piramal mentioned Oaktree claiming that it has received ‘preliminary feedback from credit rating agencies’ that its non-convertible debentures (NCD) would be assigned a AAA rating was a violation of Sebi norms. Credit rating agencies are not permitted by law to provide any ‘credit opinion’ or have ‘indicative credit rating discussions’, Piramal mentioned.
Piramal reiterated that there was no particular program for insurance coverage shareholding that has been proposed by Oaktree. Piramal had earlier highlighted that proposed takeover of DHFL’s insurance coverage organization by Oaktree may possibly invite regulatory challenges as it is a foreign entity. Currently, 49% of DHFL Pramerica Life Insurance is owned as foreign investment by Prudential International Insurance Holdings.
Piramal mentioned like Oaktree, a number of points in its supply had been not thought of by the lenders for scoring objective.“Piramal has also ascribed Rs 1,000 crore of value to the shareholding in Pramerica, and it is also not being considered for scoring purposes,” it mentioned.