DHFL assets: Piramal, Oaktree, Adani may bid for entire book

By Ankur Mishra

Adani Properties, Piramal Enterprises and Oaktree Capital now plan to bid for all the assets of Dewan Housing Finance (DHFL), FE has learned from sources close to the development. These suitors have independently conveyed their decision to lenders after the CoC (committee of creditors) on Tuesday decided to call for fresh bids.

During the second round of bidding on November 9, Oaktree Capital had submitted a bid of Rs 31,000 crore for all assets while the three others, including Adani Properties, had expressed their intention to acquire parts of the business. Adani Properties had offered Rs 2,700 crore for the wholesale book and Rs 50 crore for the slum redevelopment authority (SRA) book while Piramal Enterprises had offered Rs 26,000 crore for the retail book. The fourth suitor, SC Lowy, had offered Rs 2,250 crore for the wholesale book with several riders.

On November 13, ahead of the third round, however, Adani Properties revised its bid and offered to buy all loan assets of DHFL for Rs 31,250 crore. Oaktree Capital, Piramal Enterprises and SC Lowy had opposed Adani’s last-minute move threatening to withdraw from the resolution process, if the CoC accepted Adani’s offer.

In a note sent to CoC on November 19, Cyril Amarchand Mangaldas said lenders have the discretion to ask bidders for plans under Option I (to bid for whole company). The note said: “The CoC has the discretion to ask the resolution applicants (RAs) to specifically provide for the remaining asset(s)/business verticals, which are not sought to be resolved under the resolution plans submitted by RAs (including a combination of resolution plans) under clause 4.4 (c) of the request for resolution plans (RFRP).”

The note also said: “If the resolution plans are received by the Administrator at any stage of the resolution plan submission process, the Administrator reserves the right to examine such plans and place them before the CoC for its consideration to the extent permitted under Applicable Laws. In such a case, other resolution applicants will not have any right to object to submission or consideration of such plans.”

The admitted claims of financial creditors from DHFL stood at Rs 87,120 crore as on September 10. State Bank of India is the lead creditor with claims of Rs 10,083 crore, followed by Bank of India, which has claimed Rs 4,126 crore. Among others, Canara Bank has claimed Rs 2,682 crore while National Housing Bank (NHB) has claimed Rs 2,434 crore.

DHFL has been undergoing insolvency proceedings at the NCLT in Mumbai since December 3, 2019.