A small finance bank has emerged as the top contender to acquire an impact investor-backed housing finance company, with an all-cash offer of ?775 crore, according to people familiar with the matter. Other bidders include investment and infrastructure firms, asset reconstruction companies, and housing finance firms. One bidder has proposed ?750 crore — ?450 crore upfront and the balance over two years — while another has offered ?625 crore, including ?325 crore upfront and the rest in installments. Other offers include ?400 crore upfront, with several other bidders offering lower amounts.

“There is strong interest from bidders, largely because the company’s loan book is fully secured. It also holds about ?300 crore in cash, and all bad loans have been adequately provided for,” said a senior official advising one of the bidders. Impact investing typically involves funding projects that aim to achieve measurable social outcomes alongside financial returns. Investor interest in housing finance firms has surged in recent months, adding to the company’s attractiveness. Recent deals include a large private equity firm acquiring a significant stake in a major housing finance company, another firm purchasing a large portion of a different housing finance company, and yet another acquisition by a global investment firm. “Given the momentum in the sector, bids could even cross ?1,000 crore,” another person involved in the process said, adding that several investors who missed the Expression of Interest (EoI) deadline are still keen to participate.  February this year after it defaulted on its loan obligations. The housing finance company has a loan book of ?1,500 crore and cash reserves of over ?300 crore. The resolution professional (RP) has so far admitted 60 creditor claims worth ?1,363 crore, with the largest claim held by a major housing finance firm. Other creditors include several large banks and financial institutions, each with less than 3% exposure.