India Digest: Adani plans housing finance co; Amtek Auto sale; WeWork India fund raise

Adani Group is planning to set up a housing finance finance company, while Liberty House, Deccan Value have emerged as top bidders for Amtek Auto. Also, Embassy Group has put in more funds in WeWork India.

Adani plans to set up housing finance co

Adani Enterprises, the holding company of conglomerate Adani Group, is looking to set up a housing finance company, for which it has applied for a licence with the National Housing Bank, said a report in The Economic Times.

According to the sources cited in the report, the planned housing finance company will offer home loans through realty developers and will also lend directly to retail customers.

“Adani has applied for a licence to set up a housing finance company,” said a source quoted in the report. “After the company got its non-banking finance business, it is looking to explore the retail and housing space.”

Adani had incorporated Adani Housing Finance Ltd, a private company in September 2017, which had applied for a housing finance licence late last year.

Liberty House, Deccan Value top bidders for Amtek Auto

The UK-based metals group Liberty House and American hedge fund Deccan Value Investors, have come up as top contenders for auto component maker Amtek Auto, according to a source-based report in The Economic Times.

Armtek is current facing bankruptcy proceedings in courts as it faces claims of Rs 12,722 crore from financial creditors and Rs 223 crore from operational creditors. Corporation Bank had referred Amtek Auto to NCLT.

“The company has received binding bids from the two entities about 10-12 days ago. But both the applicants did not submit bid bond guarantee,” said one of the sources cited in the report. “Therefore they were given additional time till Jan 9 to submit the resolution plan with bid bond guarantee.”

As per norms a resolution plan for a bankruptcy company would not be considered by lenders if the applicant does not provide bid bond guarantee.

A committee of creditors will meet next week to evaluate the two bids.

Embassy Group invests $15.6m in its JV WeWork India

Real estate developer Embassy Group, has invested around Rs 100 crore ($15.6 million) in its joint venture company WeWork India, which operates co-working spaces in the country.

According to a VCCircle report quoting regulatory filings, Embassy Buildcon was allocated 100,00,000 compulsory convertible debentures in return for its investment.

As per the filings, of the total Rs 100 crore, the Embassy Group already invested Rs 50 crore into WeWork India.

WeWork India is a joint venture between US-based co-working space provider WeWork and  Embassy Group.

The company plans to use this capital to meet business and operating expenses in addition to investing in procuring and developing office spaces. It is looking to expand into multiple locations across Bengaluru, Mumbai and Delhi.

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