The latest round of bidding for assets owned by Dewan Housing Finance Corp. has obtained bids from three of the four bidders, according to three people with direct knowledge of the matter.
Oaktree Capital Management, Piramal Group and Adani Group have submitted new offers for all of DHFL’s loan assets, the people told BloombergQuint on condition of anonymity.
Based on the plans submitted by the three bidders, Oaktree Capital’s offering allows lenders to obtain funds as quickly as possible. The US-based investor offers 35-36 billion rupees to financial creditors, which includes a down payment of 11.5 billion rupees and the remainder is paid over seven years, said two of the three people cited above.
In comparison, while the entire Piramal Group offers roughly the same amount, financial creditors will get Rs 12,000-13,000 crore up front and the rest for 10 years.
The Adani Group is offering to pay around Rs 33,000 crore, which includes Rs 11,000 crore paid in advance and the remainder over seven years, according to the two people cited above.
In all three plans, the down payment to creditors includes Rs 3 billion that DHFL has earned in the form of interest on outstanding loans in the year since the insolvency proceedings began.
On the other hand, Kapil Wadhwan, promoter of DHFL, has once again offered to liquidate the entire installments of financial creditors in a letter dated December 13. BloombergQuint has reviewed the copy of the proposal. Wadhawan has offered to repay the lenders 9 billion rupees in advance and pay the remaining installments for 7-8 years.
Apart from the offers for the entire portfolio, two offers have been submitted for portions of the portfolio.
The Adani Group offers to pay Rs 2,500-3,000 million to creditors for the slum rehabilitation and wholesale loan portfolio. Piramal Group has also submitted a separate plan, only for retail assets controlled by the housing financier, where it reiterated its earlier offer to pay Rs 26 billion.
Under the standards set by DHFL’s financial creditors, bidders can choose to bid on specific company assets, or they can even bid across the entire loan book. The offer that offers the lenders the most benefits will be considered the final offer.
Bidders are making presentations to lenders, which will help evaluate plans over the next few days, the people quoted above said. Once all lenders have completed their independent evaluations, the preferred plans will be put to a vote to determine the highest bidder, they said.
SC Lowy, the fourth bidder, who has thus far been actively participating in the bidding process, has not submitted any new bids in the current round, the people said.
Oaktree Capital, Adani Group, Piramal Group and the DHFL administrator have yet to respond to BloombergQuint inquiries emailed Monday morning. Subsequent inquiries sent by mail on Monday afternoon were also not answered.
