Hence Oaktree's offer to pay extra sum to FD holders out of the linked sale proceeds of the insurance company is highly uncertain, it said adding that Piramal in contrast has offered to pay Rs 150 crore extra to FD holders upfront in the form of cash.
This has been acknowledged by the Administrator and his advisors at SBI Capital Markets as well, in their evaluation of the two bids, as they have ascribed a value of Rs 150 crore to the Piramal offer for FD holders, and nil value to the offer from Oaktree Capital in their rating parameter to evaluate the bids, it said.
Over 55,000 retail customers and institutions hold Rs 5,400 crore of fixed deposits in DHFL.
"We have explicitly stated in our bid that in addition to whatever consideration the committee of creditors decides to offer the fixed deposit holders, we will top it up by another 10 per cent. While this doesn't give us any points, it is an attempt to share in the pain of those most affected by the decline of this franchise," Piramal Enterprises said.
An integral part of Piramal's DNA is the importance that it place on the social contribution each businesses make, it said, adding, DHFL has over 75,000 retail fixed deposit holders, most of them from humble backgrounds who have invested their hard earned savings into small deposits here.
Since the conclusion of the fifth and final round of the bidding process last month, Piramal Enterprises and the US-based Oaktree Capital are claiming that their bids are the highest and fully implementable.
According to sources, suitors have submitted bids in the range of Rs 35,000-37,000 crore.
The Committee of Creditors (CoC) are examining each bid in detail including qualitative and quantitative parameters and it is expected to take a call on January 14.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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