State Bank Of India (SBI), India’s largest bank, has asked the fellow lenders Oaktree Capital Management, Piramal Enterprises Ltd, Adani Enterprises Ltd, and SC Lowy to upgrade their offers as an improvement in the asset quality of the mortgage lender has made it more valuable.
So far, Piramal has offered Rs 26,000 crores for DHFL’s retail loan book while Oaktree has bid Rs 31,000 crores for the entire company. Adani had first bid around Rs 2,700 crores for the wholesale and slum redevelopment authority loan book. The company later revised its bid and said it would offer a little over Rs 31,000 crore for the entire portfolio of the company.
The asset quality of DHFL has improved a lot leading many borrowers, including home buyers and property developers. This has raised the cash flows of DHFL.
On this Wadhawan said that the value of the underlying assets of DHFL would worth at least Rs 43,000 crores and that the bids were lower than the intrinsic value of the company, which has shown significant recovery in asset quality.
DHFL said in an exchange filing on Thursday, “CoC in its meeting discussed various aspects regarding consideration of the bids received from prospective resolution applications (PRAs) on 17 November. The administrator has received ‘final resolution plans’ from four PRAs concerning the options given to PRAs as per the invitation for expression of interest for submission of resolution plan for DHFL dated 28 January. The administrator has also received an email with certain attachments from one of the PRA”.