Piramal Capital seeking counterbids to sell Rs 702 cr of bad loans

Piramal Capital & Housing Finance Limited (PCHFL), a wholly-owned subsidiary of Piramal Enterprises, is seeking bids to sell two pools of non-performing loans (NPLs) worth Rs 702 crore through a Swiss challenge auction.

 

Of the total Rs 702 crore, Rs 282 crore consists of unsecured NPLs, while Rs 420 crore are secured NPLs.

 

Counterbids for the two pools of bad loans are being invited separately by the non-banking finance company, with the condition that all bids must be on a “full cash” basis.

 

The anchor bids have not been disclosed by the lender in the auction document, which has prompted the respective Swiss challenge auctions.

 

Previously, PCHFL sold Rs 450 crore of legacy loans in September through a Swiss challenge auction.

 

The lender is bringing down its legacy book (erstwhile Dewan Housing Finance Corporation Ltd. loans), and has come up with various structures through which it can lighten its exposure to the wholesale segment. The company has guided that its legacy wholesale assets under management (AUM) will be below Rs 7,000 crore by the end of financial year 2025 (FY25), which as of the September quarter stands at around Rs 13,000 crore.

 

Additionally, it has guided that it will double its retail AUM to Rs 1 trillion over the next three years, by entering into newer segments in the retail lending space, including gold loans, microfinance loans, and co-branded cards. Currently, the Mumbai-based NBFC offers housing loans, loan against property, business loans and salaried personal loans.