Now Torrent group revises bid for Reliance Capital; offers Rs 8640 cr in upfront cash
In another twist to the Reliance Capital corporate insolvency resolution professional, Torrent group has now revised its bid and is now offering Rs 8,640 crores as upfront cash. Earlier, the company was offering Rs 3,750 crores as cash upfront and balance in deferred payment.
Torrent’s revised bid is still lower than Hinduja’s revised offer of Rs 9,000 crores on Net Present Value (NPV) basis.
The revision in Torrent’s bid could be prompted by a similar revision by the Hinduja group. Torrent had earlier moved the National Company Law Tribunal (NCLT) against the Hinduja Group revising its bid in violation of Challenge Mechanism and got a stay from the tribunal.
Torrent Group had said that Hinduja’s revised offer, after the e-auction, is illegal and non-compliant.
The NCLT has also directed the administrator not to present Hinduja Group’s revised offer before the committee of creditors (CoC).
Torrent Group had emerged as the highest bidder in the e-auction on 21 December 2022 with bid price of Rs 8,640 crore. As per its offer, Rs 4,000 crore is to be paid up front and the rest 55% bid price is being offered at zero interest to the lenders of Reliance Capital as deferred payment to be paid in three equal instalments in 3rd, 4th and 5th year.
Hinduja group revised its bid price for Reliance Capital to Rs 9,500 crore on 23rd December 2022, two days after the e-auction. Hindujas had earlier quoted Rs Rs 8,110 crore in the e-auction. As per Hindujas revised bid, they agreed to pay Rs 8,800 crore upfront.
The lenders are now expected to discuss the revised bid by the Torrent Group next week. It is believed that Reliance Capital lenders led by LIC and EPFO with 35% voting rights were in favour of a bid with higher upfront payment.
Also see: NCLT asks CoC not to consider Hinduja group’s bid for Reliance Capital
