Piramal revises offer for DHFL's retail book to counter Adani bid

Revised offer by Piramal not opened till going to press; Oaktree retains its offer at Rs 31,000 cr, Adani remains highest bidder

The Piramal group revised its offer for Dewan Housing Finance Corporation’s (DHFL’s) retail book on Tuesday.

Oaktree Capital, which had last week revised its offer for all assets of DHFL to Rs 31,000 crore, did not make any further revision.

With this, the Adani group remains the highest bidder for all assets of DHFL, with its bid of Rs 31,250 crore. Piramal’s revised bid — for only the retail book — was not disclosed at the time of going to press.

Its offer of Rs 25,000 crore, submitted last week, failed to enthuse lenders as a major portion was to be given in deferred payments.

Lenders now have to take a decision, and will prioritise the offer with the highest amount in upfront money. It could be finalised as early as this week, said lenders.

A banking source said the Piramal group cannot object to the Adani group’s revised and higher bid, given the bidding norms that clearly stated no bidder can object to a competitor’s proposal.

“Everything was clear in black and white. Piramal’s objections will just delay the process at a time when lenders want a quick solution,” said a person close to the development.

Spokespersons of Oaktree, Piramal, and Adani declined to comment.  

On Friday, the Piramal group had written to the CoC (committee of creditors) of DHFL, objecting to Adani’s revised proposal that had bid for all assets of DHFL. Adani had earlier bid only for the wholesale book, while Piramal — with an already struggling corporate book — had only bid for DHFL’s retail book to get a steady cash flow.

Caught off-guard by the development, the Piramal group had asked the CoC to disregard Adani’s new offer, threatening legal action. The bankers then asked all bidders to submit revised bids for the third time.

Bankers said Oaktree was offering only Rs 1,000 crore upfront, while the rest was DHFL’s cash (to be given after a few years). “Banks prefer a buyer who can offer a higher cash component now,” said a banker close to the development.

Lenders have indicated they do not prefer the Piramal and Oaktree offers of deferred cash, given they have already made provisions for DHFL’s massive default. The offer by SC Lowy — the fourth bidder — for the wholesale book came with several riders.

In February, lenders had sought offers and almost two dozen firms had evinced interest, with only four offering financial bids.

The forensic audit report by Grant Thornton, which revealed a Rs 14,500-crore hole in DHFL’s books, stalled proceedings.

DHFL’s promoters are currently in judicial custody for fraud and misappropriation of the company’s funds.