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A wholly owned subsidiary and the investment banking arm of State Bank of India
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Sell-side Advisory

Dewan Housing Finance Corporation Limited

First NBFC to be resolved through Corporate Insolvency Resolution Process (CIRP) under IBC 2016

2021

Deal Highlights

SBICAPS role – Identifying potential buyer for the Loan portfolio of DHFL. Assisted DHFL in structuring and closure of Transaction.

 

Details of the Transaction (Including unique traits, if any) –

  • DHFL was facing severe liquidity crunch. SBICAPS assisted DHFL in selling its select loan portfolio of ~Rs. 2,957 crore to Small Business FinCredit India Private Limited (SBFC) at par through Securitisation in order to meet its liquidity requirement.
  • One-off transaction wherein a stressed NBFC received 80% of the deal consideration as upfront cash and balance 20% as delayed payment in the form of Pass Through Certificates (PTCs).

 

Key Learnings

  • Insights in to the due diligence process encompassing critical portfolio parameters identified by NBFCs for purchase/sale of loan portfolio
  • Various applicable guidelines for a Securitisation Transaction.

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