Under the deal, Bank of Baroda-led bank group will get Rs 2,887 crore.
Atham Investment and Infrastructure Ltd. for Reliance Home Finance. (Authum Investment and Infrastructure) has emerged as the largest bidder. The company has offered Rs 2,887 crore. Reliance Home Finance (RHF) is a debt-ridden Anil Ambani’s Reliance Group company. According to sources, the bank group led by Bank of Baroda will get Rs 2,887 crore under the deal. In this, Rs 2,587 crore or 90 percent will be paid first. Whereas the company will give the remaining Rs 300 crore within a year.
The voting on the successful bidder and resolution plan of Reliance Home Finance began on May 31, 2021 and will conclude on June 19. Voting in favor of the proposal from Athem Investment and Infrastructure has crossed the 75 per cent mark and the bidder is all set to acquire RHF. It said that the banks selected the resolution plan of the company in a fair and transparent manner in the fiercely competitive bidding.
Listed company is Authum
Authum is a listed domestic non-banking finance company. The company has been operating for about 15 years and as on 31 December 2020, its net worth was Rs 1,500 crore.
These companies also bid for RHF
Apart from this, ARES SSG with Asset Care and Reconstruction Enterprise, Avenue Capital with ARCIL and Capri Global Capital Limited (Capri) for Reliance Home Finance. Global Capital) has placed bids.
ARES SSG) is a global fund with over $8 billion in assets under management. Avenue Capital is also a global fund with over $9.5 billion in assets under management. On the other hand, Capri Global Capital Limited is a domestic NBFC.
What is Reliance Home Finance
Reliance Home Finance is a subsidiary of Anil Ambani-controlled Reliance Capital. Its debt resolution of Rs 11,200 crore is expected to help Reliance Capital. Bank of Baroda is the lead banker under the inter-creditor agreement to resolve the debt-ridden Reliance Home Finance. The lenders had gone ahead with the resolution in August last year and invited bids.
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