At Rs 2,887 crore, Authum is top bidder for Reliance Housing Finance

subsidiary of Reliance Capital, the firm had defaulted on Rs 11,000 crore of loans and lenders had sought bids from investors

Authum Investment and Infrastructure, a Mumbai-based firm, is leading in the race to acquire Reliance Housing Finance (RHFL).  According to the plan, lenders will recieve Rs 2,887 crore along with the cash on RHFL’s books — Rs 1,800 crore.
 
Of the Rs 2,887 crore, 90 per cent of the amount will be paid upfront while the rest will be paid in a year.
 
A subsidiary of Reliance Capital, the housing finance company had defaulted on Rs 11,000 crore of loans, leading to lenders seeking bids from investors.
 
Authum is a domestic non-banking finance company (NBFC) with a net worth of Rs 1,500 crore as of December last year. Its equity capital was Rs 53 crore, according to its filings with the Ministry of Corporate Affairs.
 
Bankers said Authum’s resolution plan offers the highest bid value in net present value (NPV) terms and has already received over 75 per cent of the voting by value and over 60 per cent by numbers.
 
Banking sources said this will be the only successful resolution since Altico’s in March 2020, under the June 7, 2019, circular of the RBI on prudential framework for resolution of stressed assets. The voting for the successful bidder and the resolution plan of Reliance Home Finance had started in May and will end on June 19.