Altico Capital

This is the first resolution of a stressed NBFC outside India's insolvency and bankruptcy process

New Vernon's investment panel casts a cloud over Värde's earlier investments

Certain UTI Mutual Fund schemes had invested in debt instruments of Altico that were downgraded to below investment grade by credit rating agencies in September 2019

Real-estate focused Altico's restructuring and sale process comes as the broader shadow-bank crisis drags on, hurting the property sector and the economy

Certain UTI Mutual Fund schemes invested in debt instruments of Altico that were downgraded to below investment grade by credit rating agencies in September 2019

Alitco's bad loans spiked to 23.8% of its loan book in the July-September quarter, adding to concerns of recovery for the lenders

Some creditors to Altico Capital India Ltd., which focuses on real estate lending, are concerned that the absence of fresh equity in the proposal fails to address a dramatic surge in bad loans

Altico, a lender focused on real estate finance, had availed of a term loan of Rs 62 crore from the bank which AU SFB recalled earlier

Trading in NBFC bonds slid to a five-month low of about Rs 75,520 in the secondary market in September, the lowest since April

Apollo, for now, has offered $150 million equivalent as primary equity for Altico

India's banks are rapidly losing faith in the shadow financiers that lend to property builders

Management has sought signing of ICA by lenders to restructure liabilities

No replacement for Grewal has been found yet

After corporate entity is downgraded to 'D', fund houses need to take at least 75% markdown

The company is diversifying its portfolio, both in terms of sectors and ticket size

In an exchange note, Altico said it may have trouble making future repayments

The default by DHFL is towards principal and interest on non-convertible debentures worth Rs 350 crore issued by it, DHFL said in a regulatory filing

The deal includes Rs 500-mn co-investment from Asia-focused private equity fund and Altico's founding shareholder Clearwater Capital (now Fiera Capital)

Altico Capital, a non-banking financial company, wants to raise multiple tranches of money for a real estate private equity fund from both domestic and international investors this year.Altico has been promoted by Clearwater Capital, Abu Dhabi Investment Council and Varde Partners. It does structured debt deals and competes with the likes of HDFC and LIC Housing Finance, beside NBFCs run by Piramal, KKR and Edelweiss, among others, in lending to property developers. "We have applied for an AIF (alternative investment fund) licence from Sebi (the markets regulator). We are looking to raise funds from investors in the first half of this year," said Sanjay Grewal, chief executive officer. They aim, he said, to appoint distributors in the next couple of weeks."We plan to raise a multiple series of small to medium sized corpus for the real estate fund," he added.Piramal Fund Management, a competitor, has stopped raising third-party funds and is looking to focus on proprietory book funding .

Altico has executed trades of close to Rs 3,300 crore and disbursed Rs 2800 crore in 2016