Dewan Housing Finance Corp Ltd (DHFL) has received expressions of interest from 24 potential investors, including Deutsche Bank AG, Hero Fincorp Ltd and Piramal Enterprises Ltd, said a person aware of the development.
Other interested entities are Edelweiss Financial Services Ltd, Maple II BV, Kotak Investment Advisors Ltd, Lonestar Asia Pacific Acquisitions (Hong Kong) Ltd, KKR Credit Advisors (US), Astronomical Logistics Park Pvt Ltd, SC Lowy Primary Investments Ltd, Phoenix ARC Pvt Ltd, BCP Topco VIII Pte Ltd, Asset Reconstruction Company India Ltd, India Opportunities Investments Singapore Pte Ltd, Integral Investments South Asia VII, Adani Properties Pvt Ltd, Asia Pragati Strategic Investment Fund, ARCION Revitalization Pvt Ltd, Promontoria Holdings 206 BV, SSG Capital Management Singapore Pte, VFSI Holdings Pte Ltd, Baywater Investment Ltd, Multiples Private Equity III and Burlington Loan Management DAC.
Not all of them are interested in taking over the entire company. Some have bid for parts of the mortgage lender undergoing insolvency resolution, the person cited above said.
Earlier, expressions of interest (EoIs) were sought from potential resolution applicants under three categories. Under Option 1, EoIs were sought for the entire business of DHFL as a going concern. Under Option 2A were retail assets, investments, unsecured loans and fixed assets etc; under Option 2B were construction finance loans, mortgage loans, corporate loans, and inter-corporate deposits, pass through certificates (PTCs) or security receipts and under Option 2C were loans to projects relating to Slum Rehabilitation Authority (SRA), Mumbai.
At DHFL’s creditors meeting on 16 January, lenders relaxed the eligibility criteria for those seeking to buy the assets of the insolvent home financier. While the minimum net worth requirement of bidders was slashed from ₹5,000 crore to ₹3,500 crore, which was proposed by Reserve Bank of India (RBI)-appointed administrator, R. Subramaniakumar, the criteria for assets under management (AUM) and committed funds were lowered to ₹10,000 crore and ₹3,500 crore, respectively, from ₹12,000 crore and ₹5,000 crore.
DHFL’s assets under management are at ₹1.19 trillion, of which ₹63,690 crore is in retail loans and the rest in wholesale.
The RBI on 20 November 2019 had appointed Subramaniakumar, a former managing director and chief executive of Indian Overseas Bank, as DHFL’s administrator.
Mint reported on 26 February that DHFL resolution is witnessing growing tussle between its bondholders and fixed depositors, both seeking priority in recovering their investments. The debate intensified on 20 February, when DHFL’s committee of creditors (CoC) met with representatives of both sides demanding preferential treatment.
