Suitors for the troubled non-bank finance company Dewan Housing Finance Corporation (DHFL) submitted revised offers for the company under the Insolvency and Bankruptcy Code, sources told CNBC-TV18. The offers are higher than the prices previously offered.
Oaktree Capital, which had bid 28 billion rupees for the entire book, is now willing to pay 31 billion rupees, CNBC-TV18 has learned.
Piramal Group has significantly revised its offering for the retail book to Rs 26,500 crore from Rs 15,000 crore previously offered, two people familiar with the matter confirmed.
Adani Properties has also raised its bid for the wholesale book to Rs 2,700 crore from Rs 2,200 crore earlier. It has also offered Rs.50 million for the slum redevelopment book, said a person familiar with the details of the offer.
SC Lowy has offered the lowest amount, but also increased its offer to Rs 2,300 crore from Rs 1,550 crore for the wholesale book.
Both the Oaktree Capital and the Piramal Group offerings consider just under Rs 10,000 crore in cash from DHFL’s books. DHFL currently has cash of almost Rs 8,000 crore on its books, which is expected to increase to Rs 10,000 crore in March, and this total amount would be used to repay lenders under the plans presented so far.
“Oaktree Capital’s offer is the highest yet and is also above the liquidation value. There is no reason why banks should not accept it, ”said an experienced banker.
Dewan Housing’s liquidation value is expected to be around Rs 25 billion, and previous offers were not significantly higher than the amount, prompting lenders to request revised offers. With current offers, lenders can recover more than 35 percent of the debt. While negotiations with bidders will begin immediately, the Committee of Creditors (CoC) can declare the highest bidder before November 17, a person familiar with the matter said.
SC Lowy responded to CNBC-TV18’s inquiry saying: “SC Lowy can confirm that he has reviewed his offer and submitted to the CoC (committee of creditors).” Responses are still awaited from Piramal Group, Adani Properties and Oaktree Capital.
DHFL faces claims of Rs 87,031 crore from financial creditors under the NCLT. Its large lenders include State Bank of India (including SBI Singapore) with an exposure of Rs 10,083 crore, 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, according to its annual report. Of these, Rs 50,227 crore of assets making up 63 per cent of the total portfolio were reported as non-performing assets (gross NPA). Of this, its retail portfolio stood at Rs 33,500 crore, with gross NPAs of Rs 7,147 crore making up 21.32 percent 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 percent of the entire portfolio is classified as gross NPA.
