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Grapevine: Altico resolution plan soon; DHFL may sell wholesale book to Oaktree
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Altico Capital India Ltd, the real estate-focused lender that defaulted on interest payments in September, may float a resolution plan to its lenders this week involving selling some of its biggest loan assets, such as Skylark in Bengaluru, Casa Grande in Chennai and Marvel in Pune, two people in the know told The Economic Times. The stressed financier may also offer to bring in equity capital, they added.

Altico is also likely to tell its lenders that the assets it has financed are worth more than double the outstanding liabilities, sufficient cover to repay all the existing loans.

Altico’s assets sales could immediately fetch at least Rs 2,000 crore ($282 million at current exchange rate), the report said, adding that some lenders that had recalled loans are now a lot more confident, and are willing to consider the resolution plan.

SSG Capital, Brookfield, Cerberus, and Apollo Global are among private equity investors keen on a stake in the company, while Abu Dhabi Investment Authority (ADIA), Clearwater Capital and Varde will likely remain sponsors of the property-focused financier, the report said.

Meanwhile, Dewan Housing Finance Corp. Ltd (DHFL) has signed a nonbinding term sheet with Oaktree Capital to sell its entire Rs 35,078 crore ($5 billion at current exchange rate) wholesale book, The Economic Times said. Banks have signed the intercreditor agreement and are working on the resolution proposal submitted by the DHFL management, including converting partial debt into 51% equity resulting in the promoter Wadhawan family stake coming down by half to 20%.

The committee of creditors will meet on November 13-15 to vote on the resolution. Previously, it was reported that DHFL is in discussions to sell up to Rs 18,000 worth of wholesale real estate loans.

In another development, online car platform CarDekho is in talks to raise $100 million (Rs 708 crore at current exchange rate) in its Series D round of funding led by Chinese strategic investor Autohome Inc. at a valuation of $700 million, two people in the know told Mint.

Existing investor Sequoia Capital is also expected to join the round.

“Sequoia is driving the discussions, given it is a common investor in both Autohome and CarDekho (owned by Jaipur-based Girnar Software Pvt. Ltd,” said one of the persons mentioned above.

Apart from Sequoia, Hong Kong-based hedge fund Tybourne Capital is also a common investor in both companies.

Separately, Kolkata-based Keventer Agro, one of the largest food and agriculture companies from eastern India, is eyeing to raise $100 million (Rs 708 crore at current exchange rate) for its expansion plans for dairy and banana plantations, persons in the know told Business Standard, adding that the round may lead to the exit of Mandala Capital.

Mandala Capital had bought close to 15% stake in Keventer Agro for $25 million in 2017 at an enterprise valuation of $180 million.

“Mandala may exit in all likelihood, leading to the entry of another investor which will buy out its stake and pump more money into the company,” said one of the persons mentioned above.

Meanwhile, TPG Capital has paused the sale of its stake in privately held Shriram Capital as the country’s lingering shadow banking crisis hurts valuations, people with knowledge of the matter told Business Standard.

The private equity player owns a 10% stake in Shriram Capital.

In August, five foreign investors, including Blackstone Group Inc. and Carlyle Group LP, were shortlisted for talks to acquire a combined 30% stake in Shriram Capital from Piramal Enterprises and TPG. The sellers were seeking a valuation of Rs 8,000 crore ($1.1 billion) for the stake, people familiar with the matter had said.

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