Authum leads the listings for Reliance Home

MUMBAI: Authum Investment and Infrastructure has emerged as the winning bidder for Reliance Home Finance (RHF), a subsidiary of Anil Ambani’s Reliance Capital. The book value of the assets on offer is around Rs.
Sponsored by Alpana Dangi, Authum is a Mumbai-based NBFC focused on capital markets. Once lenders agree to an offer, they must obtain RBI approval for the company to change hands. The central bank has the power to refuse a change of ownership if it believes the incoming directors do not meet its fit and proper criteria.
The second highest bidder is said to be Hong Kong-based distressed asset fund ARES SSG along with Assets Care & Reconstruction Enterprise, which has bid around Rs 2,770 crore – a 22% recovery for lenders. The other two bidders are Avenue Capital, another global fund that bid alongside Asset Reconstruction Company of India (Arcil) and NBFC Capri Global.
The vote on the best offer and resolution plan for RHF among lenders concluded on Wednesday. Unlike other large debt resolutions, RHF is being restructured under the June 7, 2019 circular, which provides a framework outside of the bankruptcy proceedings.
The winding-up process is being managed by BoB Capital Markets together with the management consultancy Ernst & Young with the Bank of Baroda as lead bank.
In addition to RHF, the lenders are also pursuing the dissolution of Reliance Commercial Finance, another Reliance Capital subsidiary. Once these two companies are sold, Reliance Capital will pay off nearly Rs 20,000 crore in debt. Care Ratings downgraded RHF and Reliance Commercial Finance to default in 2019. As a result, lenders classified the loan as non-performing and initiated collection procedures.

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