DHFL shares locked in 5% lower circuit, Adani, Piramal, Oaktree submit revised bids to acquire portfolio

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Shares of Dewan Housing Finance Corporation (DHFL) were locked in a 5 percent lower circuit in intraday trade on BSE on December 14 after the company said the auditor had detected fraudulent transactions of Rs 1,058.32 crore.

The crisis-ridden non-banking finance company said fraudulent transactions of Rs 1,058.32 crore by way of undervaluation, fraud and preferential treatment to certain entities were detected by transaction auditor Grant Thornton (GT). The company is undergoing a resolution process under the Insolvency and Bankruptcy Code (IBC).

The company, which is now being run under an administrator, had engaged Grant Thornton earlier this year.

Read more: Latest Grant Thornton report flags fraudulent transactions of Rs 1,058 crore

Reports have emerged that Adani Group, Piramal Group and Oaktree Capital had submitted revised offers to acquire the company's entire portfolio.

CNBC-TV18, citing sources, said the three companies submitted revised offers on December 14, as the deadline ran out to submit bids ran out in the morning.

The fourth suitor—Hong Kong-based SC Lowy—did not submit a new offer,  CNBC-TV18 said.

The creditor's committee (CoC) had called for revised offers from all suitors after an unsolicited last-minute offer from Adani Group sparked a protest from the other bidders in the last round that ended on November 17. As a result, the lenders decided to give everyone another chance to improve their offers, CNBC-TV18 reported.

DHFL is facing claims of Rs 87,031 crore from creditors under NCLT. Its large lenders include State Bank of India (including SBI Singapore) with Rs 10,083 crore exposure, Bank of India Rs 4,125 crore, Canara Bank Rs 2,681 crore, NHB Rs 2,434 crore, Union Bank of India Rs 2,378 crore, Syndicate Bank Rs 2,229 crore and Bank of Baroda Rs 2,075 crore, Indian Bank Rs 1552 crore, Central Bank Rs 1389 crore, IDBI Bank Rs 999 crore, and HDFC Bank Rs 361 crore.

DHFL had assets amounting to Rs 79,800 crore as of March 2020, as per its annual report. Of these, Rs 50,227 crore of assets account for 63 percent of the total portfolio reported as non-performing assets (Gross NPAs). Of this, its retail book stood at Rs 33,500 crore, with gross NPAs of Rs 7,147 crore forming 21.32 percent of the total portfolio.