The shares of Reliance Home Finance were locked in the 5 percent upper circuit at Rs 5.98 per share, also its 52-week high, on Monday after Authum Investment & Infrastructure emerged as the highest bidder for the acquisition of all assets of the company.
The stock price of Authum Investment & Infrastructure also hit a 52-week high of Rs 585.90 apiece on the BSE.
"A Letter of Intent has been issued by Bank of Baroda (on behalf of the lenders) declaring the company as the successful bidder in relation to the acquisition of all assets of Reliance Home Finance," Authum Investment & Infrastructure said in a regulatory filing.
The company had submitted a bid of Rs 2,911 crore, which includes Rs 24 crore as deferred interest, to financial creditors subject to the terms and conditions of the bid document which has been approved by the lenders at their meeting held on June 19, 2021.
The implementation of the resolution plan by the successful bidder is subject to the approval of non-ICA lenders, shareholders, regulatory authorities and, the vacation of existing legal injunctions on the company.
“We believe that the acquisition of RHFL, a reputed lending franchise to affordable housing and housing segments, make our company a significant player in diversified financial services,” Authum Investment said.
First Published: IST