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Promoters hold about 39.21% stake in DHFL. Bankers want promoters’ stake to fall below 10% after the stake sale as part of the resolution plan.
Promoters hold about 39.21% stake in DHFL. Bankers want promoters’ stake to fall below 10% after the stake sale as part of the resolution plan.

DHFL bad debt resolution process gets revised bids all 4 in fray

  • Oaktree has revised its bid for the entire portfolio to 31,000 crore. Piramal has bid for the retail portfolio at 26,000 crore. Adani has offered 2,200 crore for the wholesale and SRA book and SC Lowy has upped its bid for the non-SRA book to 2,300 crore

Mumbai: The four bidders for debt ridden DHFL have raised their offer price in the range of 10%-70% as part of the ongoing resolution process. DHFL had received bids from Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy to either pick stake in the company or buy out assets.

Oaktree Capital has revised its bid price for the entire portfolio to 31,000 crore from 28,000 crore earlier. Piramal Enterprises has revised its bid price for the retail portfolio to 26,000 crore from 15,000 crore earlier. Adani has offered 2,700 crore for the wholesale and SRA book compared to 2,200 crore earlier and SC Lowy has upped its bid for the non-SRA book to 2,300 crore from 1,500 crore earlier.

The new bids have been submitted after the lenders asked the bidders to revise their offer. Lenders were expecting the bidders to double their offer price after they found them too low. The promoter of DHFL Kapil Wadhawan had proposed to transfer the rights, title and interest in at least 10 projects valued at 43,879 crore and settle the dues with banks. A Press Trust of India (PTI) report dated 19 October said that the erstwhile promoters have 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% stake in DHFL. Bankers want promoters’ stake to fall below 10% after the stake sale as part of the resolution plan.

The Committee of Creditors will meet next week post the Diwali holidays to finalise the bidder. The CoC was hoping to finalise the resolution plan by 16 November before it could send it to the Reserve bank of India for review. Ernst & Young is the process adviser reviewing the credit and business risks and AZB & partners is looking after the legal services.

Last month, National Company Law Tribunal (NCLT) had allowed 90 days extension for the resolution process till 5 January.

DHFL is the first financial services company which has been sent to the NCLT under the insolvency and bankruptcy code (IBC). Last year in November, the RBI had superseded its board and placed it under a three-member advisory committee comprising Rajiv Lall, executive chairman of IDFC First Bank; NS Kannan, MD of ICICI Prudential Life, and NS Venkatesh, CEO of the Association of Mutual Funds in India.

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