DHFL: Wadhawan submits alternative proposal
December 30, 2020
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In a letter to RBI, claims his offer is higher than other bidders; says choosing any one
Kapil Wadhawan, the erstwhile promoter of Dewan Housing Finance Corporation Ltd (DHFL), has urged the Reserve Bank of India, the Administrator and lenders of the debt-ridden mortgage financier to properly consider his settlement proposal, which he contends is better than the bids submitted as part of the resolution process until now.
His latest letter on December 29 comes at a time when voting on the resolution plans has already begun with fierce competition amidst at least two bidders – Oaktree Capital and Piramal Capital and Housing Finance Ltd. Adani and SC Lowy, too, are in the race. Pointing to the bidding war between Oaktree and Piramal, Wadhawan in his letter has noted that there is a possibility of a potential litigation amongst the bidders.
Financials stocks were trading in green, with the S&P BSE Finance index increasing 78.08 points or 1.12% at 7030.34 at 09:47 IST. Among the components of the S&P BSE Finance index, Paisalo Digital Ltd (up 13.9%), Union Bank of India (up 6.39%),PTC India Financial Services Ltd (up 3.82%),IndusInd Bank Ltd (up 3.73%),RBL Bank Ltd (up 3.27%), were the top gainers. Among the other gainers were Shriram Transport Finance Company Ltd (up 3.13%), Dhanlaxmi Bank Ltd (up 3.08%), Bandhan Bank Ltd (up 2.94%), South Indian Bank Ltd (up 2.75%), and Bank of Baroda (up 2.72%). On the other hand, Dewan Housing Finance Corporation Ltd (down 4.94%), Reliance Capital Ltd (down 1.75%), and Aditya Birla Money Ltd (down 1.23%) turned lower.
Race for DHFL heats up
December 23, 2020
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While Oaktree Capital’s bid of about ₹36,700 crore seems to be higher in terms of net present value, Piramal Capital and Housing Finance Ltd is offering higher upfront cash of ₹13,000 crore
As the race for buying Dewan Housing Finance Corporation Ltd (DHFL) entered the last lap, the Committee of Creditors (CoC) are up against a tricky problem whether they should give more weightage to the net present value of bids or the upfront cash being offered.
There also seems to be growing concern about additional sweeteners being offered for DHFL as clarifications after the fourth round of bidding.
December 23, 2020
Raises concern on fairness and transparency of resolution process
Concerned about the fairness and transparency of the bidding process for Dewan Housing Finance Corporation Ltd (DHFL), Oaktree Capital has written to the Committee of Creditors (CoC), saying it hopes the resolution process will be completed “positively and in the correct manner”.
In the recent letter, Oaktree has also underlined that its bid exceeded the next bid by ₹1,150 crore on a notional basis and ₹1,478 crore on a net present value basis. “In addition, Oaktree is offering ₹300 crore of incremental value to retail fixed deposit holders in response to various requests received by Oaktree,” the letter pointed out.
Financials stocks were trading in the negative zone, with the S&P BSE Finance index falling 30.48 points or 0.46% at 6642.41 at 13:48 IST. Among the components of the S&P BSE Finance index, IDBI Bank Ltd (down 11.81%), Satin Creditcare Network Ltd (down 4.99%),Reliance Capital Ltd (down 4.95%),Indostar Capital Finance Ltd (down 4.88%),Dewan Housing Finance Corporation Ltd (down 4.87%), were the top losers. Among the other losers were IIFL Wealth Management Ltd (down 3.55%), Indian Overseas Bank (down 3.27%), Punjab National Bank (down 3.08%), JSW Holdings Ltd (down 3.07%), and Pilani Investment & Industries Corporation Ltd (down 3.05%). On the other hand, Spandana Sphoorty Financial Ltd (up 7.41%), Canara Bank (up 6.45%), and Bandhan Bank Ltd (up 3.45%) moved up.