Piramal, Adani & Oaktree submit bids for DHFL

December 15, 2020 7:15 AM

FE learns Piramal has offered to pay Rs 1,054 crore more as cash upfront than Oaktree capital; it is willing to pay Rs 12,700 crore while Oaktree is willing to make a cash payment of Rs 11,646 crore. Adani Properties’ cash offer is smaller at Rs 10,750 crore. While Oaktree has offered to pay Rs 21,000 crore of debt over seven years, Piramal has said it will pay Rs 19,550 crore in 10 years.

Wadhawan has promised an upfront payment of Rs 9,000 crore to the creditors.Wadhawan has promised an upfront payment of Rs 9,000 crore to the creditors.

By Ankur Mishra
Oaktree Capital has offered a total of Rs 36,646 crore for Dewan Housing Finance Corporation (DHFL), topping the bids of Rs 35,550 crore by Piramal Enterprises and Rs 33,110 crore from Adani Properties. The fourth suitor, SC Lowy has not submitted any fresh bid in the fourth round, persons familiar with the developments said.

FE learns Piramal has offered to pay Rs 1,054 crore more as cash upfront than Oaktree capital; it is willing to pay Rs 12,700 crore while Oaktree is willing to make a cash payment of Rs 11,646 crore. Adani Properties’ cash offer is smaller at Rs 10,750 crore. While Oaktree has offered to pay Rs 21,000 crore of debt over seven years, Piramal has said it will pay Rs 19,550 crore in 10 years.

Adani Properties has has offered to to convert Rs 19,110 crore into debt, payable in 10 years. Piramal Enterprises has also submitted a bid to acquire only the wholesale and slum redevelopment authority (SRA) book of DHFL. Similarly, Adani Properties has said it is open to acquiring the retail assets of the troubled lender. Banks are expected to evaluate the bids in the next 2-3 days.

The committee of creditors (CoC) had earlier called for fresh bids, without opening those submitted in the third round after the National Company law Tribunal (NCLT) stayed the resolution proceedings on a petition filed by the National Housing Bank (NHB). Later, the CoC had agreed to consider bids in the third round, giving buyers an option to improve their offers.

The admitted claims of financial creditors from DHFL stood at Rs 87,120 crore as on September 10. State Bank of India is the lead creditor with claims of Rs 10,083 crore, followed by Bank of India which has claimed Rs 4,126 crore. Among others, Canara Bank has claimed Rs 2,682 crore while NHB has claimed Rs 2,434 crore. DHFL has been undergoing insolvency proceedings at the NCLT in Mumbai since December 3, 2019.

Meanwhile, erstwhile promoter Kapil Wadhawan has written a letter to the DHFL administrator offering to repay 100% of the principal amount to all the creditors within 7-8 years. Wadhawan has promised an upfront payment of Rs 9,000 crore to the creditors.

In his proposal, he has offered to service Rs 40,244 crore retail portfolio at 8% per annum and offered to pay a yearly installment of Rs 5,749 crore for 7 years on the retail book. The yearly installment for the retail portfolio will begin by financial year FY22 and will get completed by FY28. He wants a moratorium of two years on the borrowings of Rs 36,750 crore wholesale book. “Thereafter, the outstanding to be serviced at 11% per annum over the period of 8 years in equal yearly installments of Rs 4,571 crore per year,” he said. The proposed conversion of debt to convertible instruments is assumed at Rs 54 per share, he added. The shares of DHFL closed at Rs 39.65 per share on the BSE, down 5% from the previous day’s close.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1SBI asset quality remains healthy: Chairman Dinesh Kumar Khara
2Apple beats Samsung to become world’s biggest smartphone seller: IDC
3WhatsApp makes logging in on desktop more secure, begins rolling out biometric authentication feature