Lenders to Reliance Home Finance Ltd, part of the debt-ridden Anil Dhirubhai Ambani Group (ADAG), have received bids from five entities, two bankers aware of the matter said. Asset Reconstruction Co. India (Ltd) (ARCIL) and Authum Investment & Infra Ltd are among those who have submitted bids for all or some assets of the company, the bankers said on condition of anonymity.
“We have received both binding and non-binding bids. Some of the entities who have given a non-binding bid have sought more details or more time to complete due diligence. So, lenders will evaluate the price quoted by all bidders so that there is value maximization,” one of the two bankers cited above said.
The resolution process is being managed by BoB Capital Markets (BoB Caps) and Ernst & Young (EY).
In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of Reliance Home Finance and Reliance Commercial Finance, both arms of Reliance Capital.
Those interested in Reliance Home Finance are allowed to bid for either its retail portfolio, or its entire shareholding and business, or the entire company excluding the wholesale book.
Retail disbursements of Reliance Home Finance had plunged amid tightening liquidity following the collapse of Infrastructure Leasing & Financial Services (IL&FS) in 2018, and significant debt repayments during the September 2018 to February 2019 period.
It had defaulted on borrowings of ₹6,504.73 crore as on 30 September. It had an overdue of ₹7,729.13 crore, including non-performing assets worth ₹4,778.11 crore, at the end of the September quarter.
In July 2019, the lenders had signed separate inter-creditor agreements for Reliance Home Finance and Reliance Commercial Finance to find a resolution under the 7 June 2019 circular of the RBI. As part of the debt resolution process, lenders had appointed Grant Thornton in August 2019 for forensic audit.
The company had reported a net loss of ₹375 crore in FY20, against a net profit after tax of ₹67 crore a year ago.
The outstanding loan book stood at ₹13,961 crore as on 31 March, against ₹16,355 crore in the previous year.
