Money & Banking

Authum’s RP chosen for Reliance Commercial Finance

Our Bureau Mumbai | Updated on July 15, 2021

The lenders’ recovery is estimated to be ₹1,240 crore and receives over 80 per cent of the votes.

Lenders to Reliance Commercial Finance are understood to have selected Authum Investment and Infrastructure’s resolution plan of ₹1,585 crore as the successful bid.

According to sources, Authum’s plan had the highest net present value and received over 80 per cent of the votes.

The recovery for lenders is estimated to be ₹1,240 crore.

Reliance Commercial Finance also has additional cash and cash equivalent of over ₹250 crore as on June 30, 2021, which will be distributed along with plan proceeds, sources said.

Reliance Commercial Finance or Reliance Money is a 100 per cent subsidiary of Anil Ambani controlled Reliance Capital. It had a debt of about ₹9,017 crore. It offers small and medium enterprises loans, loans against property, infrastructure financing, agriculture loans, supply chain financing, micro-financing, vehicle loans and construction finance.

Authum Investment and Infrastructure is a registered NBFC involved in investments in shares and securities and has a net worth of over ₹2,400 crore as on June 30, 2021.

Earlier its bid of ₹2,911 crore for Reliance Home Finance had also been selected as the successful resolution plan by lenders.

The resolution of Reliance Commercial Finance is expected to help reduce the overall debt of Reliance Capital by over ₹9,000 crore.

Led by Bank of Baroda, lenders to Reliance Commercial Finance had in August 2020 initiated the resolution plan and had sought bids for the two companies. The process was run by Deloitte Touche Tohmatsu LLP as the resolution advisor.

Voting had started on June 7, 2021 and concluded on Thursday.

Apart from Authum, other bidders whose plans had been taken up for voting included UV ARC in consortium with Hawk Capital, Invent ARC and Alchemist ARC.

Published on July 15, 2021

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