InvestorQ : Is it true that SBI is asking for upgraded offers for Dewan Housing?
Chandralekha Desai made post

Is it true that SBI is asking for upgraded offers for Dewan Housing?

NISHA Nayak answered.
2 years ago

State Bank of India is the lead lender to DHFL and it has now asked all the four possible suitors to the bankrupt DHFL to upgrade their offers considering the distinct improvement in the asset quality of the lender.

Currently, there are bids that have been received from suitors like Oaktree Capital Management, Piramal Enterprises, Adani Enterprises. In addition, SC Lowy has also been an interested party to the deal. This request was made after the easing of lockdown led to a rapid improvement in the asset quality of DHFL. Most individual borrowers and property developers have started to repay loans.

SBI has therefore conveyed to the Committee of Creditors or COC that the bidding rounds for all potential investors should continue to evaluate if there can be better price realization. Meanwhile, the former promoter, Kapil Wadhawan has written to the RBI that the value of the assets of DHFL would be worth at least Rs.43,000 crore.

Currently, DHFL owes Rs.87,000 crore to lenders and bondholders put together. The new dimension to the deal was added after the Adani group offered to buy DHFL’s entire business rather than just the select redevelopment portfolio. Let us also look at the offers till date.

Piramal Enterprises has offered Rs.26,000 crore for DHFL’s retail loan book while Oaktree has bid ₹31,000 crore for the total company. Adani’s revised offer is higher than Oaktree for the full company. One this appears to be certain that at the prices offered, the haircut will be to the tune of 65-75%, which explains why SBI is keen to ensure that it is able to get the best price for DHFL.