Banks are bracing themselves for a lukewarm response as the deadline to submit binding bids for Dewan Housing Finance Limited (DHFL) ends on Saturday (October 17).

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Of the two dozen players that had initially shown an interest in bidding for the mortgage lender, only four or five may actually submit bids, three senior executives involved in the transactions told CNBC-TV18.

Adani Properties, which has long been an interested party even before DHFL was sent to the bankruptcy court, is expected to submit a bid to acquire its wholesale portfolio, said the people quoted earlier.

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Hong Kong-based SC Lowy, a privately-owned global banking group that specialises in distressed and high-yield fixed income markets, is also expected to bid for DHFL’s wholesale assets, as per people in the know.

Piramal Enterprises is also a strong contender and is eyeing DHFL's retail book, which it may place a bid for. US-based distressed asset fund Oaktree Capital also remains interested in acquiring the lender’s retail book, and may even consider bidding for the entire portfolio, said two people involved in the talks.

When the lenders to DHFL first invited Expression of Interest (EOIs) in February to acquire its assets in parts (retail, wholesale/SRA) or in entirety, as many as 24 suitors had lined up. Of these, 22 were shortlisted by lenders as eligible to submit bids for the company.

Also read: DHFL seeks loan dues of Rs 112 crore from Pune-based realtor, guarantors

However, seven months and several deadline extensions later, few remain interested. "COVID-19 has made many people rethink their investment decisions because people want to conserve cash now," said an executive advising one of the bidders.

Another banker with significant exposure to DHFL said that recent instances of more frauds coming to light involving DHFL may also have given some potential suitors cold feet.

As a result, only a handful may come forward to submit binding bids when the deadline ends on Saturday evening. CNBC-TV18's queries to Adani Properties, Piramal Enterprises, Oaktree Capital, and SC Lowy remained unanswered at the time of publishing this copy.

Also read: Initial audit reveals over Rs 17,000 crore siphoned off from DHFL

DHFL is the first financial services company where lenders are attempting a resolution via the Insolvency and Bankruptcy Code. It was admitted into NCLT in December last year after RBI superseded its board owing to governance concerns. DHFL is facing claims of over Rs 94,900 crore from financial creditors in NCLT.

(Edited by : Jomy)

First Published:Oct 16, 2020 9:04 PM IST