Earlier this month, Dewan Housing Finance Company Ltd (DHFL) had obtained 4 bids for both selecting up stake within the firm or shopping for out property. The 4 bidders are Adani Group, Piramal Enterprises, US-based Oaktree and Hong Kong-based SC Lowy.
In November, the Reserve Financial institution referred DHFL, the third largest pure-play mortgage lender, to the Nationwide Firm Legislation Tribunal (NCLT) for insolvency proceedings.
DHFL was the primary finance firm to be referred to the NCLT by the RBI utilizing particular powers below Part 227.
Previous to that, the corporate’s board was outmoded and R Subramaniakumar was appointed because the administrator. He’s additionally the decision skilled below the Insolvency and Chapter Code (IBC).
Sources mentioned DHFL lenders will meet on Monday to decide on obtained bids.
Since traders have submitted poor bids, lenders are set to lose whopping ₹68,000 crore in opposition to the whole liabilities of ₹95,000 crore, in accordance with sources.
Consequently, lenders are more likely to reject the bids as they’re far decrease than the Truthful Worth (FV) and Liquidation Worth (LV) arrived at by the impartial valuers on behalf of the debtors, they mentioned.
DHFL didn’t reply to an e-mail in search of feedback on the matter.
The Mumbai-based mortgage participant had complete property price ₹93,000 crore with retail and wholesale asset portfolio pegged at ₹33,000 crore and ₹48,000 crore, respectively.
SBI is the lead banker with an publicity of over ₹10,000 crore to DHFL, whereas LIC and EPFO can even have to write down off almost ₹10,000 crore.
Oaktree has submitted bid for the complete firm and the bid worth is ₹20,000 crore as in opposition to the admitted legal responsibility of ₹95,000 crore with ₹10,000 crore money in hand, in accordance with sources.
Due to this fact, sources mentioned, accepting Oaktree bid would lead to a write-off of ₹65,000 crore for the lenders led by SBI.
Adani Group has bid for DHFL’s ₹40,000-crore wholesale and Slum Rehabilitation Authority (SRA) portfolio, valuing it at ₹3,000 crore, they mentioned.
Piramal Enterprises has bid for DHFL’s retail portfolio. It has quoted ₹12,000 crore for the enterprise and is asking for 18 per cent yield on this portfolio, they mentioned.
In accordance with bankers, the bid of SC Lowy, the fourth bidder, comes with so many situations that it’s unlikely to be thought of.
Some lenders are of opinion that DHFL has a beautiful zero threat retail portfolio and it ought to be acquired by the banks themselves, as an alternative of providing that to any bidder at such a low worth.
The lenders and bidders are additionally jittery because of the ongoing CBI and ED investigation in opposition to the alleged fraud and siphoning off of giant worth by DHFL promoters Wadhwan Brothers by fudging of accounts and creating 2.6 lakh faux accounts, which have been termed as “Bandra Guide Entities” within the forensic audit performed by Grant Thornton.
The Enforcement Directorate (ED) had arrested DHFL promoters Kapil Wadhawan and Dheeraj Wadhawan in Could 2020 within the Sure Financial institution fraud case, and each have been in jail since then.
In accordance with a submitting final month, fraudulent transactions price ₹17,394 crore had been reported at DHFL throughout FY07 to FY19, as per a report of transaction auditor Grant Thornton.
Fund diversion by the promoters of DHFL resulted in lenders classifying DHFL account as “fraud”.
One other fraudulent transaction price ₹12,705.53 crore was reported by the forensic audit, adopted by the third one earlier this month.
This story has been revealed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.