Authum completes takeover of Reliance Home Finance Ltd
ECONOMY & POLICY

Authum completes takeover of Reliance Home Finance Ltd

The former Anil Ambani company Reliance Home Finance Ltd. (RHFL) has been acquired by Authum Investments and Infrastructure for 33510 million, the largest resolution of a debt-ridden non- banking financing company (NBFC) outside of bankruptcy courts.

"The necessary funds have been transferred by Authum to secured creditors, and lenders have signed the business transaction agreement transferring the assets to them. This concludes a process that started over three years ago "a person with knowledge of the arrangement said.

RHFL owed a total of 115,400 million to creditors, Bank of Baroda being the largest. In June 2021, Authum was chosen as the successful bidder for RHFL. The Securities and Exchange Board of India (SEBI) raised concerns about the voting procedure, and a challenge brought by the Shapoorji Pallonji Group resulted in a stay on the distribution of money. As a result, the plan's implementation was postponed.

The loan recoveries in RHFL have increased over the period from 16000 million at the time the letter of intent was sent to more than 30000 million, therefore the delay really benefited lenders. Lenders might enhance their recovery as a result.

The secured creditors' recoveries have increased from the initial plan's 26% to around 29% as a result of the rise in the final amount.

On March 3, the Supreme Court approved the resolution plan, with the option for dissenting debenture holders (DHs) to accept its conditions or pursue other legal avenues to recoup their debts.

In October, Authum completed the acquisition of Reliance Commercial Finance, another business owned by Anil Ambani. Yet, the RHFL transaction is larger in terms of both dues and creditors.

The former Anil Ambani company Reliance Home Finance Ltd. (RHFL) has been acquired by Authum Investments and Infrastructure for 33510 million, the largest resolution of a debt-ridden non- banking financing company (NBFC) outside of bankruptcy courts. The necessary funds have been transferred by Authum to secured creditors, and lenders have signed the business transaction agreement transferring the assets to them. This concludes a process that started over three years ago a person with knowledge of the arrangement said. RHFL owed a total of 115,400 million to creditors, Bank of Baroda being the largest. In June 2021, Authum was chosen as the successful bidder for RHFL. The Securities and Exchange Board of India (SEBI) raised concerns about the voting procedure, and a challenge brought by the Shapoorji Pallonji Group resulted in a stay on the distribution of money. As a result, the plan's implementation was postponed. The loan recoveries in RHFL have increased over the period from 16000 million at the time the letter of intent was sent to more than 30000 million, therefore the delay really benefited lenders. Lenders might enhance their recovery as a result. The secured creditors' recoveries have increased from the initial plan's 26% to around 29% as a result of the rise in the final amount. On March 3, the Supreme Court approved the resolution plan, with the option for dissenting debenture holders (DHs) to accept its conditions or pursue other legal avenues to recoup their debts. In October, Authum completed the acquisition of Reliance Commercial Finance, another business owned by Anil Ambani. Yet, the RHFL transaction is larger in terms of both dues and creditors.

Next Story
Infrastructure Urban

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Next Story
Infrastructure Urban

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Next Story
Infrastructure Urban

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, “We are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?