CNBC-TV18 Exclusive: Adani, Oaktree & Piramal submit revised bids for DHFL; lenders to evaluate all offers today

Adani Group, Piramal Group and Oaktree Capital today submitted revised offers to acquire Dewan Housing Finance Limited’s (DHFL) entire portfolio as the deadline to submit bids ended this morning, two people with direct knowledge of the matter said. The fourth suitor- Hong Kong-based SC Lowy- did not submit a new offer for the company, CNBC-TV18 has learnt.

The creditor's committee (CoC) had called for revised offers from all suitors after an unsolicited last-minute offer from Adani Group sparked a protest from the other bidders in the last round that ended on November 17, CNBC-TV18 had reported. As a result, the lenders decided to give everyone another chance to improve on their offers.

Adani Group has submitted bids under two options in the latest round ending this morning, said people in the know. It submitted one bid under Option 1- which is for the entire portfolio, and a second bid for the company’s wholesale and slum rehabilitation books.

Piramal Group, which had earlier only bid for the retail book, has also submitted bids under two options in the current round, as per two executives who spoke on the condition of anonymity. It submitted one bid under Option 1 for the entire portfolio and a second bid for the company’s retail book.

Oaktree Capital Management, which had bid for the entire portfolio in the previous round, is understood to have submitted a revised offer for the full book, added people quoted earlier.

SC Lowy is understood to not have placed a revised offer. It had bid for the slum rehabilitation book in the earlier round, and being the lowest bidder, was not expected to participate in the current round, CNBC-TV18 had earlier reported.

The committee of creditors (CoC) is meeting this morning to open all bids and evaluate the offers on the table, CNBC-TV18 has learnt. The CoC will consider both offers made today and in the last round, and consider the higher of the two in its final evaluation, said people involved in the matter.

Last week, Oaktree Capital Management had raised concerns about the bidding process with DHFL’s administrator and the creditor's committee. Oaktree sought clarification on whether the current round of bidding that ended this morning (December 14), would be the last and final round, as the lenders have not explicitly stated whether they would allow further revisions. CNBC-TV18 has reviewed the contents of this letter.

Piramal Group had made an offer of about Rs 26,500 crores for the retail book in the last round of bidding. Adani Group had offered Rs 33,000 crores for the entire book and Rs 2750 for the wholesale and SRA book, Oaktree Rs 31,000 crores for the entire portfolio and SC Lowy Rs 2,300 crores for the SRA book as per the last round of bids ending November 17.

DHFL is facing claims of Rs 87,031 crore from financial creditors under NCLT. Its large lenders include State Bank of India (including SBI Singapore) with Rs 10,083 crore exposure, Bank of India Rs 4,125 crore, Canara Bank Rs 2,681 crore, NHB Rs 2,434 crore, Union Bank of India Rs 2,378 crore, Syndicate Bank Rs 2,229 crore and Bank of Baroda Rs 2,075 crore, Indian Bank Rs 1552 crore, Central Bank Rs 1389 crore, IDBI Bank Rs 999 crore, and HDFC Bank Rs 361 crore.

DHFL had total assets amounting to Rs 79,800 crore as of March 2020, as per its annual report. Of these, Rs 50,227 crore of assets forming 63 percent of the total portfolio was reported as non-performing assets (Gross NPAs). Of this, its retail book stood at Rs 33,500 crore, with gross NPAs of Rs 7,147 crore forming 21.32 percent of the total portfolio.

The wholesale book, including SRA loans, stood at Rs 42,860 crore, of which a whopping Rs 39,690 crore or 92.61 percent of the entire portfolio is categorized as gross NPAs.