Authum Investment and Infrastructure emerges as highest bidder for Reliance Home Finance

Anil Ambani

Authum Investment and Infrastructure Ltd (AIIL) emerged as the highest bidder for Reliance Home Finance (RHF), a group company of the debt-ridden Anil Ambani-promoted Reliance Group. The AIIL offered Rs 2,887 crore for the deal, it said in a regulatory filing on June 20.

According to the deal, the Letter of Intent dated June 19, 2021, has been issued by Bank of Baroda on behalf of the lenders under the inter-creditor agreement. Earlier, AIIL 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.

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"We wish to inform you that our Company has on 19.06.2021 emerged as the successful highest bidder in relation to acquisition of all assets of Reliance Home Finance Limited (‘RHFL’) under the resolution process in terms of
Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated June 7, 2019 (‘RBI Directions’)," AIIL said in the regulatory filing.
Authum is a domestic NBFC with around 15 years of presence and over Rs 1,500 crore net worth as on December 31, 2021.

Retail disbursements of Reliance Home Finance had plunged amid tightening liquidity following the collapse of Infrastructure Leasing & Financial Services (IL&FS) in 2018, and significant debt repayments from September 2018 to February 2019.