Adani, KKR, Bain Capital, Piramal, Kotak, among two dozen bids for DHFL; around 14 entities keen to take over entire operations

Most banks led by the State Bank have declared DHFL account as an NPA in the third quarter.

Press Trust of India February 18, 2020 08:11:24 IST
Adani, KKR, Bain Capital, Piramal, Kotak, among two dozen bids for DHFL; around 14 entities keen to take over entire operations
  • In November, the Reserve Bank referred DHFL, the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings

  • As of July 2019, the company owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders

  • Most banks led by the State Bank have declared DHFL account as an NPA in the third quarter

Mumbai: Adani Group, KKR, Bain Capital, Kotak Mahindra Bank and Piramal Enterprises are among the more than two dozen entities that have put in bids for crippled DHFL, the first financial services player undergoing insolvency process, according to two sources.

The sources told PTI that out of the interested entities, at least 14 are keen to take over the whole operations of the mortgage lender.

In November, the Reserve Bank referred DHFL, the third-largest pure-play mortgage lender, to the National Company Law Tribunal (NCLT) for insolvency proceedings.

Prior to that, the company's board was superseded and R Subramaniakumar was appointed as the administrator. He is also the resolution professional under the Insolvency and Bankruptcy Code (IBC).

The last date for submission of bids under the insolvency process was Monday.

One of the sources said the company has received 24 bids, of which 14 are for the entire operations.

Adani KKR Bain Capital Piramal Kotak among two dozen bids for DHFL around 14 entities keen to take over entire operations

Representational image. Reuters.

According to the second source, the number of bidders was close to 30.

While Subramaniakumar could not be reached for comments, calls made to a DHFL spokesperson remained unanswered.

Bain Capital's Integral Investments South Asia VII fund, the US-based KKR Credit Advisors, Adani Properties, Welspun group's Astronomical Logistics, Blackstone arm BCP Topco VIII fund, Piramal Enterprises and Hero Fincorp, are among those that have bid for the entire operations of DHFL, the first source said.

The source said Hong Kong-based Lonestar Asia Pacific Acquisition, Kotak Investment Advisors, Singapore-based SSG Capital Management, Varde Partners' VFSI Holdings, Aion arm Racion Revitalisation, Oaktree's India Opportunities Investment Fund and leading domestic ARC Arcil, are also looking for DHFL's full operations.

As per the second source, Deutsche Bank AG, Edelweiss Financial Services, Barings' Maple II BV, Phoenix ARC, Warburg Pincus' Baywater Investment, SC Lowey Primary investments and Multiples Private Equity III, have put in their bids for part of DHFL.

This list also includes Vastu Housing Finance Corporation, Asia Pragati Strategic Investment Fund, Promontoria Holding 206 BV (Cerberus), and Burlington Loan Management (Davidson Kempner), the source added.

As of July 2019, the company owed Rs 83,873 crore to banks, the National Housing Board, mutual funds and bondholders.

Most banks led by the State Bank have declared DHFL account as an NPA in the third quarter.

DHFL was sent to bankruptcy after the government on 15 November, 2019 enabled the Reserve Bank to sent large financial services companies, excluding banks, to the NCLT for insolvency proceedings.

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