Six bidders submit bids for Reliance Home Finance Limited

Six bidders have submitted bids for Reliance Home Finance Limited (RHFL).Of these, only two bidders have submitted compliant and binding bids while the other four bids are non-binding and not compliant with conditions of the bid. The other four bids are non-binding in nature and are also not compliant with the bid conditions. These four bidders have also not placed the mandatory bid bond of Rs.10 crore.

Kotak Special Situations Fund (KSSF) and Asset Care and Reconstruction Enterprise Limited (ACRE) have submitted non binding bid with several conditions including exclusivity and has also asked for additional time of two months to complete due-diligence even after the deadline which was extended multiple times.

In order to accommodate the four non compliant bidders, the lenders have decided to further extend the bidding timeline till January 31 next year.

The lenders of RHFL have received a total of six bids for its assets in response to the resolution process being run. However, only two bids are binding and compliant in nature with the bid conditions. The two compliant and binding bids are from Avenue, a US based fund and ARCIL, an Asset Reconstruction Company (ARC). The second bid is by Authum Investment & Infrastructure Limited, listed non banking finance company (NBFC).

Avenue/ARCIL and Authum, the two binding and compliant bidders have opposed the lenders action citing an attempt to change the rules of the game and have threatened to walk away from the process.

In August this year, lenders led by Bank of Baroda had invited expressions of interest for the assets of Reliance Home Finance and Reliance Commercial Finance, both arms of Reliance Capital owned by Anil Ambani. The resolution process is being managed by BoBCapital Markets (BoB Caps) and Ernst & Young (EY)

Reliance Home Finance (RHF) is one of India's leading home finance companies in the private sector. We provide financial solutions like Loans Against Property, Housing Finance Loans, Construction Funding loans