Authum Investment & Infrastructure Ltd emerges successful bidder in acquisition of Reliance Commercial Finance Ltd

Today, Authum Investment & Infrastructure Ltd emerged as the successful bidder in relation to acquisition of Reliance Commercial Finance Limited ('RCFL') after completion of resolution process in terms of Reserve Bank of India (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 RCFL under the Inter-Creditor Agreement (ICA)) has issued a letter of intent ('LOI') dated 15.07.2021 in favour of our Company. The LOI is subject to the terms and conditions as stated in the LOI including Non-ICA lenders, statutory & other regulatory approvals.

The Company had submitted a bid of Rs. 1,629 crores 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 July 15, 2021.

RCFL, a reputed lending franchise offers a wide range of products which includes Loan against Property (LAP), MSME/SME Loans, Infrastructure Financing, Education loans and Micro financing. This acquisition adds to our Company's vision of being a significant player in diversified financial services.

Authum Investment & Infrastructure Limited ("Authum"), is a Non-Banking Finance Company (NBFC, Non-Public Deposit taking) registered with Reserve Bank of India, having Net worth of approx. Rs. 2,360 crores as on 30th June 2021.

Authum is currently managed by a team of professionals with significant investment experience in domestic, Public and Private Equity. 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 debt investments.

The company possesses a strong foundation supported by an enthusiastic management with relevant domain experience and a sound balance sheet. Further, proposed acquisition of Reliance Commercial Finance Limited ('RCFL') and Reliance Home Finance Limited ('RHFL') strengthens our business portfolio and enables us to develop a single platform across multiple financial products and services in the NBFC sector. The company shall continue to strive for excellence and seek new product offerings and geographical expansion in a phased manner to gain healthy traction in this growing lending Industry.

As part of the diversification strategy, the company is extremely excited about the growth potential which these acquisitions offer with a blend of commercial finance, MSME/SME, affordable housing, loan against properties, retail and consumer finance along with strong digital & technology play to generate higher yields. The company believes that these segments are major drivers of the national economy with significant unfulfilled demand and have the potential to positively touch the lives of millions in the country.

Authum is geared up to meet its financial commitment to the Lenders of RCFL and RHFL under the LOI. As part of its core investment strategy and principles of value preservation and long-term value creation, Authum will leverage RCFL's and RHFL's existing customer base, employees, processes, licenses, knowledge, infrastructure, branch network and digital platform with an aim to create a niche lending platform. Authum is committed to the well-being of the current employees of RCFL and ensuring the continuity of services to customers of RCFL.

Shares of Authum Investment & Infrastructure Ltd was last trading in BSE at Rs. 1085.5 as compared to the previous close of Rs. 1033.85. The total number of shares traded during the day was 811 in over 32 trades.

The stock hit an intraday high of Rs. 1085.5 and intraday low of 1085.5. The net turnover during the day was Rs. 880340.

Source : Equity Bulls

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