Money & Banking

DHFL resolution: No decision taken on Adani’s bid at creditors’ meet

Our Bureau Mumbai | Updated on November 17, 2020

Adani offer the highest, but lenders await clarity

The meeting of the Committee of Creditors of Dewan Housing Finance Corporation Ltd on Tuesday ended without any decision being taken on whether to accept the unsolicited offer made by the Adani Group.

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Top banking sources told BusinessLine that the CoC will wait for a direction on how to deal with the situation under the IBC rules. “The bid covers were not opened,” said a source aware of the proceedings.

Has Piramal upped its offer?

This comes even as the Piramal group is understood to have increased its offer for the retail book of DHFL. The lenders to DHFL had allowed all the bidders to increase their offers after the Adani Group submitted a bid after the deadline last week. Banking sources said that Adani’s offer continues to be higher than the other three bidders, but the CoC wants to proceed only after getting some clarity to avoid any legal complications. “Piramal is interested only in the retail book, whereas Adanis have offered to buy DHFL fully. So, even after increasing its offer on Tuesday, Piramal’s bid is lower,” said a banking source.

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Last week, Adani Group companies — Adani Properties and Nirjara Pedestal — wrote to the CoC expressing intent to revise their bids in the DHFL resolution process. This was objected to by the Piramal group on grounds that accepting a bid after the deadline would mean a violation of the IBC rules. The lenders, however, did not heed the objections raised by the Piramal group . In its unconditional offer, the Adani Group had said it proposes to revise the resolution plan and submit a proposal for Option I (entire company). The main terms of the offer include an upfront cash consideration of ₹10,750 crore, along with seven-year non-convertible debentures worth ₹17,750 crore.

The basic implication of the Adani Group letter is that it is ready to offer more than Oaktree Capital, which was until then the sole bidder for the entire company portfolio with an offer of ₹31,000 crore. Piramal group had also revised its bid for the retail book to ₹26,500 crore from ₹15,000 crore offered earlier. It’s not clear how much Piramal has offered to pay under the new bid placed on Tuesday. Oaktree and S C Lowy did not revise their offers on Tuesday.

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Published on November 17, 2020

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