Adani, Piramal amongst 4 bidders for DHFL, lenders stare at ₹60k cr write-off

(Photo: Mint)

New Delhi: Adani Group and Piramal Enterprises are among the many 4 entities which have positioned bids for DHFL, the primary monetary providers participant present process insolvency course of, in line with sources.

Moreover, sources mentioned, the US-based Oaktree and Hong Kong-based SC Lowy submitted bids for DHFL on October 17, the final date to submit last bids.

In November, the Reserve Financial institution referred DHFL, the third largest pure-play mortgage lender, to the Nationwide Firm Legislation Tribunal (NCLT) for insolvency proceedings.

DHFL was the primary finance firm to be referred to NCLT by the RBI utilizing particular powers below part 227.

Previous to that, the corporate’s board was outmoded and R Subramaniakumar was appointed because the administrator. He’s additionally the decision skilled below the Insolvency and Chapter Code (IBC).

Based on sources, Oaktree has submitted bid for your entire firm and the bid worth is 20,000 crore as towards the admitted legal responsibility of 95,000 crore with 10,000 crore money in hand.

Subsequently, sources mentioned, accepting Oaktree bid would lead to a write-off of 65,000 crore for the lenders led by State Financial institution of India (SBI).

Adani Group has bid for DHFL’s 40,000-crore wholesale and Slum Rehabilitation Authority (SRA) portfolio, valuing it at 3,000 crore, sources mentioned.

Piramal Enterprises has bid for DHFL’s retail portfolio. It has quoted 12,000 crore for the enterprise and is asking for 18 per cent yield on this portfolio, they mentioned.

Based on bankers, the bid of SC Lowy, the fourth bidder, comes with so many situations that it’s unlikely to be thought-about.

Bankers are of the opinion that decision of DHFL by means of NCLT will lead to an enormous write-off for the lenders and they are going to be caught with over 60,000 crore non-performing assest (NPAs).

DHFL didn’t reply to an electronic mail in search of feedback on the matter.

With this sort of heavy write-off, sources mentioned, it doesn’t appear to be a superb deal for lenders.

SBI is the lead banker with an publicity of over 10,000 crore to DHFL, whereas LIC and EPFO can even must write-off practically 10,000 crore.

As of July 2019, the corporate owed 83,873 crore to banks, the Nationwide Housing Board, mutual funds and bondholders.

DHFL was despatched to chapter after the federal government on November 15, 2019 enabled the Reserve Financial institution to despatched massive monetary providers firms, excluding banks, to NCLT for insolvency proceedings.

Based on a submitting final month, fraudulent transactions value 17,394 crore have been reported at DHFL throughout FY07 to FY19, as per a report of transaction auditor Grant Thornton.

Fund diversion by the promoters of DHFL resulted in lenders classifying DHFL account as “fraud”.

One other fraudulent transactions value 12,705.53 crore was reported by the forensic audit, adopted by the third one earlier this month.

The third fraud value 2,150.84 crore, by the use of undervaluing the corporate’s insurance coverage subsidiary, was detected by Grant Thornton.

This story has been revealed from a wire company feed with out modifications to the textual content.

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