Money & Banking

Lenders to take 60% haircut on Authum Infra’s ₹2,887-crore top bid for Reliance Home Fin

Our Bureau Mumbai | Updated on June 15, 2021

The final voting for the successful plan for Reliance Home Finance will continue till June 19

 

Authum Infrastructure and Investment resolution plan for debt ridden Reliance Home Finance is set to be the successful bid and has received over 75 per cent of the voting by value and over 60 per cent by numbers.

Lenders to the housing finance company are expected to receive ₹2,887 crore of which about 90 per cent or ₹2,587 crore will be paid upfront. The balance 10 per cent amounting to ₹300 crore will be repaid within one year.

Sources indicated that about ₹1,800 crore of cash available with Reliance Home Finance will be distributed to lenders along with the proceeds from the resolution plan.

But with a debt of ₹11,200 crore, lenders would still face a haircut of about 60 per cent.

Bidders

Sources indicated the final voting for the successful plan for Reliance Home Finance will continue till June 19. Voting started on May 31 and was set to be completed on Tuesday (June 15).

But the rest of the voting will not have any impact on the outcome now, they added.

Authum Investment and Infrastructure is a registered NBFC involved in investments in shares and securities. Set up in 1982, it is listed on the BSE and has a networth of over ₹1,500 crore as on December 31, 2021.

The other three bidders for Reliance Home Finance included ARES SSG along with Assets Care and Reconstruction Enterprise, Authum Infrastructure and Investment, Avenue Capital along with ARCIL and Capri Global Capital.

Reliance Home Finance is a subsidiary of Anil Ambani controlled Reliance Capital. Its ₹11,200 crore debt resolution is expected to help Reliance Capital.

Bank of Baroda is the lead banker under the Inter Creditor Agreement for the resolution of debt ridden Reliance Home Finance. The lenders had in August last year proceeded with the resolution plan and had sought bids.

Published on June 15, 2021

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