Authum Wins Bid for Reliance Commercial Finance; Lenders will take 80% haircut with offer

Lenders from Reliance Commercial Finance, led by Anil Ambani, said Thursday that Mumbai-based NBFC Authum Investment and Infrastructure was the successful bidder for the company, three people familiar with the matter told CNBC-TV18.

The Bank of Baroda-led consortium began voting on four resolution plans for the company earlier in June and concluded the vote on Thursday, people in the know. Other bidders who were in the fray included asset reconstruction company UVARCL in consortium with Hawk Capital Pvt Ltd, Invent ARC and Alchemist ARC.

Authum, with a total bid of Rs 1,629 crore, has been voted the highest bidder in the process conducted under the Reserve Bank of India (RBI) resolution framework of June 2019, one of the people named said. previously. Reliance Commercial Finance is reportedly in debt of over Rs 9,000 crore, and Authum’s offer involves a nearly 80% discount for lenders led by Bank of Baroda.

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However, in addition to the total offer made by Authum, the lenders should additionally receive the cash from the books of Reliance Commercial Finance in accordance with the approved plan, CNBC-TV18 learned. This would marginally increase recovery from lenders.

Authum Investment & Infrastructure was also earlier declared the successful bidder for Reliance Capital’s other subsidiary, Reliance Home Finance, with a bid of Rs 2,911 crore in total.

Its two bids for Reliance Commercial Finance and Reliance Home Finance will be subject to final regulatory approval and are expected to meet RBI’s criteria for fit and suitability, people in the know.

Authum Investment & Infrastructure Ltd was incorporated in 1982 and is a non-bank financial company listed on Bombay Stock Exchange Ltd and Calcutta Stock Exchange Ltd, according to information on the company’s website. According to Authum, he had a net worth of around Rs 2,360 crore as of June 30, 2021.

First publication: STI


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