Authum wins bid for Reliance Commercial Finance; lenders to take 80% haircut with offer

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Authum Investment and Infrastructure, with a total bid of Rs 1,629 crore was voted the highest bidder under the process conducted as per the Reserve Bank of India's June 2019 resolution framework.

Lenders to Anil Ambani-led Reliance Commercial Finance on Thursday declared Mumbai-based NBFC Authum Investment and Infrastructure as the winning bidder for the company, three people familiar with the matter told CNBC-TV18.
The Bank of Baroda-led consortium began voting on four resolution plans for the company earlier in June and concluded voting on Thursday, said people in the know. The other bidders who were in the fray included asset reconstruction company UVARCL in consortium with Hawk Capital Pvt Ltd, Invent ARC, and Alchemist ARC.
Authum, with a total bid of Rs 1,629 crore was voted the highest bidder under the process conducted as per the Reserve Bank of India's (RBI) June 2019 resolution framework, said one of the people quoted earlier. Reliance Commercial Finance is understood to have a debt of over Rs 9,000 crore, and Authum's offer entails close to 80 percent haircut for lenders led by Bank of Baroda.
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However, besides the total offer made by the Authum, lenders are additionally expected to receive the cash of Reliance Commercial Finance’s books as per the approved plan, CNBC-TV18 learnt. This would marginally increase the lenders' recovery.
Authum Investment & Infrastructure was earlier also declared the winning bidder for the other Reliance Capital subsidiary- Reliance Home Finance, with an offer of Rs 2,911 crore in total.
Both of its bids for Reliance Commercial Finance and Reliance Home Finance will be subject to the final nod from the regulator, and would have to meet RBI's fit and proper criteria, said people in the know.
Authum Investment & Infrastructure Ltd was incorporated in 1982 and is a non-banking finance company listed on Bombay Stock Exchange Ltd and Calcutta Stock Exchange Ltd, as per the information on the company’s website. As per Authum, it had a net worth of approximately Rs 2,360 crore as of June 30, 2021.

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