Unity Small Finance Bank (SFB) has emerged as the top contender to acquire impact investor-backed Aviom India Housing Finance, with an all-cash offer of ?775 crore, according to people familiar with the matter. Other bidders in the fray include Authum Investment and Infrastructure, Northern Arc, DMI Housing, KIFS Housing Finance, and Omkara Asset Reconstruction Company. Authum has proposed ?750 crore — ?450 crore upfront and the balance over two years — while Northern Arc has offered ?625 crore, including ?325 crore upfront and the rest in installments over two years. DMI Housing’s bid involves an upfront payment of ?400 crore, while Omkara and KIFS have offered ?450 crore and ?325 crore, respectively. “There is strong interest from bidders, largely because Aviom’s loan book is fully secured. The company 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. Neither Unity SFB, Authum, Northern Arc, DMI Housing, KIFS, Omkara ARC, nor the resolution professional (RP) commented on the development. Investor interest in housing finance firms has surged in recent months, adding to Aviom’s attractiveness. Recent deals include Blackstone’s 80% acquisition of Aadhar Housing Finance, Warburg Pincus’s 84% purchase of Shriram Housing Finance, and TPG Global’s acquisition of Griham Housing Finance (formerly Poonawalla Housing). “Given the momentum in the sector, bids could even cross the ?1,000 crore mark,” another person involved in the process said, adding that several investors who missed the Expression of Interest (EoI) deadline are still keen to participate. The Reserve Bank of India admitted Aviom India Housing Finance into the corporate insolvency resolution process under the Insolvency and Bankruptcy Code (IBC) in 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 RP has so far admitted 60 creditor claims worth ?1,363 crore, with LIC Housing Finance holding the largest claim at 7.2%. Other creditors include HDFC Bank, Kotak Mahindra Investments, and Tata Capital, each with less than 3% exposure.

https://www.livehomes.in/news_letter