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

Indian Delegation Visits South Africa for Trade and Investment Talks

A nine-member Indian delegation participated in the second session of the India-South Africa Joint Working Group on Trade and Investment (JWGTI) held in Pretoria from 22 to 23 April 2025. Discussions were conducted in a cordial atmosphere, focusing on expanding trade ties, boosting investments, and fostering greater people-to-people exchanges. The meeting was co-chaired by Malose Letsoalo, Chief Director, Bilateral Trade Relations, Department of Trade, Industry and Competition of South Africa, and Priya Nair, Economic Adviser, Department of Commerce, India. Delegates from the High Commission ..

Next Story
Infrastructure Urban

Ministry of Cooperation Inaugurates NCOL Organic Packaging Facility

The Ministry of Cooperation inaugurated a new state-of-the-art packaging facility of National Cooperative Organics Limited (NCOL) in Noida, Uttar Pradesh. The centre is dedicated to packaging pulses and organic products while maintaining high hygiene and quality standards. Dr Ashish Kumar Bhutani, Secretary, Ministry of Cooperation, called the facility a major milestone in promoting the Bharat Organics brand. The initiative aims to empower farmers and expand access to certified organic produce across India, while offering premium prices to farmers and affordable organic food to consumers. Un..

Next Story
Infrastructure Urban

Adani Airport Seeks $750 Million Loan from Global Banks

Adani Group is in discussions for an offshore loan of up to $750 million for its airport arm, Adani Airport Holdings Limited, with international banks such as Barclays Plc, First Abu Dhabi Bank PJSC, and Standard Chartered Bank Plc. The funds will support capital expenditure and repay dollar-denominated debt maturing in September. The deal is expected to conclude by early May. Adani Airport Holdings Limited operates seven major airports across India and is preparing to open a new international hub worth $two billion on the outskirts of Mumbai. This would be the Group’s second significant o..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?