New Delhi, Dec 25 (IANS): The race to acquire the bankrupt Dewan Housing Finance Corporation Ltd (DHFL) has intensified with both the final bidders Oaktree and Piramal having enhanced their offers.

US-based Oaktree Capital has raised its offer for the insolvent NBFC by Rs 1,700 crore, intensifying the bidding war with Piramal Enterprises.

In its letter to the Committee of Creditors on Thursday, Oaktree said that its bid is now at Rs 36,410 crore and that of Piramal is Rs 34,909 crore.

Oaktree's offer came a day after Piramal raised its bid by Rs 1,000 crore and also improved its offer for a controlling stake in DHFL's Pramerica Life Insurance Company to Rs 1,000 crore from Rs 300 crore.

"We understand that the bidder that submitted the second highest bid has sought to increase its bid by means of (a) allocating additional interest income to the financial creditors and (b) increasing its bid for the insurance stake. As required, we are allocating an additional amount of Rs 1,700 crores as additional interest income to the financial creditors," Oaktree said in its latest letter to the CoC.

The lenders had asked both the final bidders in the December 18 meeting to sweeten their bids. The CoC also asked Oaktree and Piramal to specify the proposed shareholding structure of DHFL's insurance business, where foreign ownership is currently capped at 49 per cent.

Earlier, Kapil Wadhawan, the erstwhile promoter of the Dewan Housing Finance Corporation Ltd (DHFL), wrote to the administrator of DHFL, reiterating his new proposal to repay 100 per cent of the principal debt to the creditors.

He also assured to run the NBFC following the best corporate governance standards as decided by the lenders.