Reliance Home Finance, Reliance Capital gain nearly 5 pc

Shares of Reliance Home Finance on Monday gained nearly 5 per cent after Authum Investment and Infrastructure Ltd emerged as the highest bidder for the company.

The stock jumped 4.91 per cent to close at Rs 5.98 on the BSE.

On the NSE, it gained 4.72 per cent to close at Rs 5.55.

Shares of Reliance Capital also jumped 4.97 per cent to close at Rs 27.47 on the BSE.

Authum Investment and Infrastructure Ltd has emerged as the highest bidder for Reliance Home Finance (RHF), a group company of the debt-ridden Anil Ambani-promoted Reliance Group, with about Rs 2,900 crore offer.

In a regulatory filing, Authum said the company 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.

The voting that started on May 31 and concluded on June 19 saw participation from over 91 per cent of the lenders by value, sources said, adding lenders have voted in favour of Authum's plan over other bids.

In this connection, the lead bank on behalf of lenders of RHFL under the Inter-Creditor Agreement (ICA) has issued a letter of intent (LOI) dated June 19, 2021, in favour of the company, the filing said.

The LOI is subject to the terms and conditions stated in the LOI including statutory and regulatory approvals, it added.

''We believe that the acquisition of RHF, a reputed lending franchise to affordable housing and housing segments make our company a significant player in diversified financial services,'' it said.

Authum is a domestic NBFC with around 15 years of presence and over Rs 1,500 crore networth as of December 31, 2020.

With the resolution, the debt of Reliance Capital Ltd (RCL) would come down by about Rs 11,200 crore or more than 25 per cent of outstanding.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)