Authum Investment & Infrastructure Ltd emerges successful highest bidder to acquire assets of Reliance Home Finance Ltd

Authum Investment & Infrastructure Ltd has on 19.06.2021 emerged as successful highest bidder in relation to acquisition of all assets of Reliance Home Finance Limited ('RHFL') under the resolution process in terms of RBI (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated June 7, 2019 ('RBI Directions'). In this connection, the Lead Bank (on behalf of Lenders of RHFL under Inter-Creditor Agreement (ICA)) has issued a letter of intent ('LOI') dated 19.06.2021 in favour of our Company. The LOI is subject to terms & conditions stated in LOI including statutory and regulatory approvals.

The company believes that the acquisition of RHFL, a reputed lending franchise to affordable housing and housing segments make the company a significant player in diversified financial services.

The Letter of Intent has been issued for declaring the Company as the successful bidder in the relation to the acquisition of all assets of Reliance Home Finance Limited under resolution process in terms of the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019 dated June 7, 2019.

The Company had submitted a bid of Rs. 2,911 crores (which includes Rs. 24 crores 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.

Authum Investment & Infrastructure Limited ("Authum"), is a Non-Banking Finance Company (NBFC, Non-Public Deposit taking) registered with Reserve Bank of India, having assets under management (AUM) of approx. Rs. 2,200 crores as on date.

Authum is currently managed by a team of professionals with significant investment experience in domestic, Public and Private Equity, space. Authum's investment strategy is long term value creation through investments in listed companies, providing growth capital to unlisted companies, acquisition of financial assets, real estate investments and select debt investments.

Authum is presently well poised to expand itself in the coming years into a diversified financial service by pursuing a combination of organic and inorganic growth opportunities.

As part of our future diversification strategy, we are extremely excited about the growth potential in the affordable housing, loan against properties, retail, consumer finance, SME and MSME lending along with strong digital play. We believe that these segments are major drivers of the national economy with significant unfulfilled demand and have the potential to touch the lives of millions in the country.

Authum is geared up to meet its financial commitment to the Lenders of RHFL under the LOI. As part of its core investment strategy and principles of value preservation and longterm value creation, Authum will leverage RHFL's existing customer base, employees, processes, licenses, knowledge, infrastructure, branch network and digital platform. Subject to the terms of the LOI, Authum is committed to the well-being of the employees of RHFL, hiring new talent, to ensure the continuity of services to customers of RHFL.

Shares of Authum Investment & Infrastructure Ltd was last trading in BSE at Rs.574.45 as compared to the previous close of Rs. 563.2. The total number of shares traded during the day was 5130 in over 119 trades.

The stock hit an intraday high of Rs. 574.45 and intraday low of 574. The net turnover during the day was Rs. 2946834.

Shares of Reliance Home Finance Ltd was last trading in BSE at Rs.5.7 as compared to the previous close of Rs. 5.43. The total number of shares traded during the day was 7826255 in over 5942 trades.

The stock hit an intraday high of Rs. 5.7 and intraday low of 5.16. The net turnover during the day was Rs. 43523443.

Source : Equity Bulls

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