Six suitors, together with Kotak Particular Conditions Fund (KSSF) and Asset Reconstruction Firm (India) Restricted (ARCIL), have submitted bids for Reliance House Finance, a part of Anil Ambani-promoted Reliance Group.
Solely two bidders submitted compliant and binding bids whereas 4 bids are non-binding and never compliant with bid situations, sources mentioned. Lenders have determined to additional prolong the bidding timeline until January 31, 2021, with a view to accommodate the 4 non-compliant bidders, sources added.
The 2 compliant bidders have opposed the transfer by the lenders and have threatened to stroll away from the alleged non-transparent course of, they mentioned.
The 2 compliant and binding bids are from the US-based Avenue and ARCIL, an asset reconstruction firm (ARC), as a joint bid and different from Authum Funding & Infrastructure Restricted, listed non-banking finance firm (NBFC).
Kotak Particular Conditions Fund (KSSF) and Asset Care and Reconstruction Enterprise Restricted (ACRE) have submitted a non-binding bid with a number of situations together with exclusivity and has additionally requested for added time of two months to finish due-diligence, even after the deadline which was prolonged a number of instances, sources mentioned.
The opposite two ARCs specifically, Invent and Alchemist have additionally submitted conditional bids that are non-compliant with the bids situation and haven’t paid the obligatory bid bond of Rs 10 crore, they mentioned.
The lenders at their assembly held on December 17, 2020, determined to increase the bid time by two months until January 31, 2021, and invited revised bids from all of the bidders, in order that non-compliant bidders could also be accommodated, sources mentioned.
In August this yr, lenders led by Financial institution of Baroda had invited expressions of curiosity for the property of Reliance House Finance and Reliance Business Finance, each arms of Reliance Capital.
The decision course of is being managed by BoB Capital Markets (BoB Caps) and Ernst & Younger (EY). These fascinated with Reliance House Finance are allowed to bid for both its retail portfolio, or its whole shareholding and enterprise, or your complete firm excluding the wholesale e-book.
Retail disbursements of Reliance House Finance had plunged amid tightening liquidity following the collapse of Infrastructure Leasing & Monetary Companies (IL&FS) in 2018, and vital debt repayments throughout September 2018 to February 2019 interval.