Authum Investment and Infrastructure Ltd has emerged as the highest bidder for Reliance Home Finance (RHF), a group company of the debt ridden Anil Ambani-promoted Reliance Group, with Rs 2,887 crore offer.
As per the deal, sources said, lenders led by Bank of Baroda would receive Rs 2,887 crore, of which Rs 2,587 crore or 90 per cent would be paid upfront and remaining Rs 300 crore within a year.
Voting for the successful bidder and the resolution plan of Reliance Home Finance that had started on May 31, 2021, is set to conclude on June 19, sources said, adding, votes in favour of Authum's proposal has already crossed threshold limit of 75 per cent and the bidder is now set to acquire RHF.
Authum Investment and Infrastructure's resolution plan has been selected by the Lenders in a fair, transparent and closely contested bidding process, sources said.
Authum is a domestic NBFC with around 15 years of presence and over Rs 1,500 crore networth as on December 2020.
The resolution plan by the listed NBFC Authum has got over 75 per cent votes in value terms and 60 per cent votes in terms of numbers so far, sources said.
The voting on bids received for RHF resolution will end on June 19.
The other three bidders are ARES SSG (global fund with over USD 8 billion under management) along with Assets Care & Reconstruction Enterprise Ltd, Avenue Capital (global fund with over USD 9.5 billion under management) jointly with ARCIL and Capri Global Capital Limited - a domestic NBFC.
The final resolution plans have crossed the fair value of the company as assessed by two independent valuers, sources said, adding, the recovery of about Rs 1,800 crore of cash available with RHF as on March 31, 2021, will be distributed to banks along with plan proceeds.
RHF resolution is the only successful resolution post Altico in March 2020, under June 7, 2019 direction of RBI on Prudential Framework for Resolution of Stressed Assets.
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.