DHFL may further extend timeline for submission of bids

DHFL also claims to have witnessed some green shoots amid Covid-19 pandemic.

By Ankur Mishra

The beleaguered mortgage financier Dewan Housing Finance Corporation (DHFL) may further extend the timeline for submission of bids beyond July 24, as suitors have asked for more time, sources close to development told FE. “The prospective bidders have asked for more time to submit bids as lockdown is still continuing in a few states,” a source told FE. The company has not received any bid so far, the source added. Maharashtra government had earlier announced extension of the general lockdown until July 31, with an aim to contain the Covid-19 surge.

The committee of creditors (CoC) had earlier decided to extend the deadline for submission of bids for the company by 45 days from June 9, which was effectively July 24, 2020. The decision was taken at a meeting held on May 12. DHFL has shortlisted 22 applicants for the resolution of the troubled company. The mortgage financier had given applicants the option to bid for the whole company or in parts. Of the total applicants, 14 had submitted expressions of interest (EoIs) for the entire business of DHFL. KKR India Financial Services, Welspun Group, Adani Group, Oaktree Capital and Bain Capital were among those which placed EoIs to take over the entire business. The company is undergoing insolvency proceedings at National Company Law Tribunal (NCLT), Mumbai since December 3, 2019.

In an investor presentation uploaded by DHFL on Tuesday, the company said that its net interest income (NII) increased 245% year-on-year (y-o-y) in the March quarter to Rs 2,240 crore. The net interest margin (NIM) shot up to a whopping 12.31% in March quarter this year, compared to 2.62% in the same quarter last year.

DHFL also claims to have witnessed some green shoots amid Covid-19 pandemic. The retail collections of the company increased 26% in May 2020 over April. With the phased unlock announcement in June 2020, the retail collections further increased by about 83% in June 2020, the company said. Similarly, the number of borrowers availing moratorium has come down to 27% in June, from 36% in May 2020. However, the net loss of DHFL widened in the March quarter to Rs 7,635 crore, against `2,223-crore loss in the year-ago quarter.