“The banks will have to take a call on whether to accept the offers of Oaktree or those of Piramal
Groups,” said a source close to the development.
“Oaktree will offer Rs 8,000 crore over the next few years, which is close to the G-Sec and is not attractive to the lenders,” the source said.
The bids were opened by the lenders this week. The offer made by the fourth bidder, SC Lowy, for the construction finance books was full of riders and does not look attractive, the source said.
The lenders will start negotiating with the bidders, asking them to improve their offers, the source said. For Piramal
Group, the acquisition of the retail books is important to balance its wholesale books, which are facing issues due to the slowdown in the real estate sector.
“DHFL’s retail books are giving a steady cash flow and will help Piramal,” the source said.
Group has made conservative bids, keeping in mind the slowdown in the real estate sector.
In February this year, the lenders to DHFL
had sought offers for the company. Almost 24 companies
had shown an interest in DHFL.
They included Aion Capital, Adani Capital, Hero Fincorp, KKR Credit Advisors, Oaktree, Morgan Stanley, Goldman Sachs Group Inc, Deutsche Bank AG, Warburg Pincus, SSG Capital, Edelweiss, Lone Star, and Blackstone. All backed out barring the four.
The bids for the company were muted also due to a forensic audit report by Grant Thornton, which revealed a Rs 14,500-crore hole in DHFL’s books.
The report, which has been submitted to the National Company Law Tribunal (NCLT), has said there is a Rs 9,320-crore hole in the wholesale books, a Rs 1,707-crore loss on the SRA count, and another diversion of Rs 3,000 crore in retail loans.
Recovering these loans is doubtful, the report said. Indian lenders, mutual funds, and provident fund have an exposure of Rs 88,000 crore to the company. Of this, State Bank of India has an exposure of Rs 10,000 crore.