Relevant Document:
Auction Notice
Piramal Enterprises Ltd. and Bain Capital Credit joint venture India Resurgence Fund (IndiaRF) has won Piramal Capital & Housing Finance Ltd.’s (formerly known as Dewan Housing Finance Corporation Ltd.) Swiss challenge auction to sell non-performing assets (NPAs) aggregating to INR 43.67 billion ($546.6 million), according to two sources familiar with the matter.
The Swiss challenge auction - which concluded on July 14 - did not receive any counter bids, the sources said. The auction was called on the basis of original bids of INR 7.1 billion received from IndiaRF on a cash to security receipts basis, with cash portion equal to 15% and the security receipts portion equal to 85%, according to
auction notice on the Piramal Capital & Housing Finance website.
The cash portion equals INR 1.065 billion, while the security receipts equals INR 6.035 billion, according to the auction notice.
The NPAs include around INR 17 billion NPAs of the former Dewan Housing Finance Corporation, which were
acquired by Piramal in September 2021, the sources added.
These NPAs were offered for sale as a single pool of assets on “as is where is, as is what is, whatever there is and without recourse basis,” the auction notice shows. The bids are invited either on full cash basis or cash to security receipts basis, the auction notice states.
Piramal declined to comment. IndiaRF did not respond to request for comment.
– Dipika Lalwani