Authum Investment and Infrastructure have appeared as a savior and emerged as the top bidder to acquire Reliance Commercial Finance (RCF), The investment company has offered 1,600 crores offer to the company of debt-ridden Anil Ambani-promoted Reliance Group.
Until now Authum has acquired this second Reliance Group company and has risen as a winner. Last month in June, a consortium of lenders headed by Bank of Baroda had netted an engagement for Authum to procure Reliance Home Finance (RHF) as part of the perseverance process. Authum’s plan with the highest Net Present Value of Rs 1,585 crore has endured over 80 percent of the voting and the plan had spanned the fair value as evaluated by 2 independent valuers, sources stated.
Authum is a domestic NBFC with around 15 years of occupancy and over Rs 2,400 crore net worth as of June 2021. The voting for the strong bidder and the resolution plan for RCF commenced on June 7 and settled on July 15, 2021. As per the sources, Authum’s resolution plan has been chosen as the successful one, after several rounds of bidding and intervention by the lenders and the lead bank Bank of Baroda with numerous bidders.
The lenders’ recovery is leading as Rs 1,240 crore of cash has already been allocated and the company has supplementary cash and cash equivalent of over Rs 250 crore as of June 30, 2021, which will be spread along with plan proceeds. RCF’s resolution will rise in the overall debt rebate of Reliance Capital by over Rs 9,000 crore in a remarkable positive to the overall debt reduction plans of the company.