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 Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?