To evaluate the latest offers, the committee of creditors (CoC) of Dewan Housing Finance Corp. Ltd (DHFL) will meet on Friday, to discuss bids submitted by the suitors. The banks will consider the bids from Piramal Group, Oaktree Capital, and Adani Group, said media reports. DHFL has been undergoing insolvency proceedings at the NCLT in Mumbai since December 3.
It is understood that Oaktree Capital had offered a total of Rs 36,646 crore, Piramal Enterprises had offered Rs 35,550 crore for the entire book of DHFL. Adani Properties had submitted a total bid of Rs 33,110 crore. Lenders are expected to evaluate the bid from all parameters which include net present value (NPV). Voting on the resolution plan is expected to begin by December 22-23.
Shares of DHFL on Friday were down 5 per cent at 32.40 on the Bombay Stock Exchange.
CoC had earlier called for fresh bids, without opening those submitted in the third round. However, the National Company law Tribunal (NCLT) put a stay on the resolution proceedings on a petition filed by the National Housing Bank (NHB). Later, the CoC agreed to consider the bids submitted in the third round, even as there was an option to improve their offers in the fourth round.
According to a business daily, Piramal Enterprises was offering to pay Rs 1,054 crore more as cash upfront than Oaktree capital in the latest round of bidding. Piramal Enterprises has offered to pay Rs 12,700 crore, while Oaktree is willing to make a cash payment of Rs 11,646 crore. Adani Properties has offered a cash payment of Rs 10,750 crore in its bid. While Oaktree has offered to pay Rs 21,000 crore of debt over seven years, Piramal Enterprise has said it will pay Rs 19,550 crore in 10 years. Adani Properties has offered to convert Rs 19,110 crore into debt, payable in seven years, Financial Express had reported.
Lenders will also evaluate bids submitted by the suitors to acquire DHFL in parts. It is learned that Adani Properties has submitted a bid to acquire only the wholesale and slum redevelopment authority (SRA) books of DHFL. Similarly, Piramal Enterprises has submitted a bid to acquire the retail assets of the troubled lender.
The admitted claims of financial creditors from DHFL are 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 and NHB have claimed Rs 2,682 crore and Rs 2,434 crore, respectively.