Authum emerges as top bidder for Reliance Commercial Finance

Authum to emerge as the top bidder for Reliance

Authum Investment and Infrastructure has emerged as the top bidder to take over Reliance Commercial Finance (RCF), a company of debt-ridden Anil Ambani-promoted Reliance Group, with about Rs. 1,600 crore offer. Authum emerges as top bidder for Reliance Commercial Finance

Authum is a domestic NBFC with around 15 years of presence and over Rs. 2,400 crore net worth as of June 2021.

According to sources, Authum’s resolution plan – with the highest Net Present Value of Rs. 1,585 crore and over 80 per cent of the voting, while also crossing the fair value as assessed by 2 independent valuers – has been selected as the successful one, after several rounds of bidding and negotiation by the lenders and the lead bank Bank of Baroda with several bidders.

The voting for the successful bidder and the resolution plan for RCF started on June 7 and concluded on July 15, 2021.

Lenders’ recovery is high, as Rs. 1,240 crores of cash have already been distributed and the company has additional cash and cash equivalent of over Rs. 250 crore as of June 30, 2021, which will be distributed along with plan proceeds.

RCF’s resolution will result in overall debt reduction of Reliance Capital NSE -0.75% by over Rs. 9,000 crores, in a significant positive to the overall debt reduction plans of the company.



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