The DHFL Committee of Creditors (COC) stares at a 70 per cent haircut in the meeting on Monday as lenders to lose a whopping Rs 68,000 crore against the total admitted liabilities of Rs 95,000 crore.
Four bidders, Adani Group, Piramal Groip, US based Oaktree, and Hongkong based SC Lowy have submitted shockingly poor bids, as per banking sources.
It is learnt that the regulator is mulling scrapping of bidding process to let DHFL continue to operate under the RBI appointed administrator.
The bids received are far lower than the Fair Value (FV) and Liquidation Value (LV) arrived at by the independent valuers on behalf of the lenders.
Thee bids offer a very low recovery value - ranging between as low as Rs 75 crore to highest of only Rs 15,800 crore, banking sources said. The recovery rate from these bids for the lenders will be in the range of from less than 3 per cent to upto 16 per cent.
The Resolution Plan for DHFL provided for 3 options: Option 1: To acquire DHFL on as-is-where-is basis, Option 2: To acquire the Wholesale and SRA asset portfolio of the company and Option 3: To acquire Retail asset portfolio of the company.
DHFL had total assets of Rs 93,000 crore, which comprise: (A) Retail asset portfolio of Rs. 33,000 crore; (B) Wholesale asset portfolio of Rs 48,000 crore; (C) Cash and cash equivalent of Rs. 12,000 crore.
The details of the bids received include a bid by Oaktree which has bid for the entire company, as is where is basis, for only Rs 15,800 crore.
Oaktree has offered to pay only Rs 15,800 crore for the entire company, that too is payable after 7 years. Oaktree has also offered Rs 12,000 crore available with Company to the lenders. The Oaktree bid will result in around 16% recovery for the lenders.
Adani Group has bid for DHFL's Rs 48,000 crore wholesale and Slum Rehabilitation Authority (SRA) asset portfolio for only Rs 2,250 crore, i.e. less than 5% of the total portfolio value, and a meagre 2.3% of the total admitted liabilities of Rs 95,000 crore.
Adanis have offered to acquire DHFL's wholesale and SRA portfolio for only Rs. 2,250 crore - of which Rs. 750 crore will be paid within 1 year and the balance Rs. 1500 crore will be payable after 8 years.
Piramal Enterprises has bid for DHFL's Rs 33,000 crore retail portfolio for only Rs 6,000 crore. PiramalEnterprises has also offered Rs 9,000 crore out of Rs. 12,000 crore available with company to the lenders. The Piramal bid would result in recovery of only around 6% for the lenders.
SC Lowy has submitted the bid that comes with so many conditions that it is unlikely to be considered.
Some lenders are of opinion that DHFL has an attractive zero risk retail portfolio and it should be acquired by the banks themselves, instead of offering that to any bidder at such a low value.
The lenders and bidders are also jittery due to the ongoing CBI and ED investigation against the alleged fraud and siphoning off of huge value by DHFL promoters Wadhawan Brothers by fudging of accounts and creating 2.6 lakh fake accounts, which have been termed as "Bandra Book Entities" in the forensic audit conducted by Grant Thornton.
ED had arrested the DHFL promoters, Kapil and Dheeraj Wadhawan in May 2020, in the Yes Bank fraud case, and both the brothers are in jail since then.
Investigating agencies are also probing DHFL and its promoters for their business dealings with companies linked to gangster Iqbal Mirchi and Dawood Ibrahim.
State Bank of India, the lead bank, has an exposure of over Rs 10,000 crore.
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