Second round of auction for Reliance Capital on 2 April

In a glimmer of hope for Reliance Capital lenders and other stakeholders, the second round of auction might see the light of day after Hinduja Group agreed to go with the its earlier offer of Rs 9000 crore upfront cash.

IIHL of Hinduja Group has also told the lenders that it wants to withdraw its post auction revised bid of Rs 9000 crores and retain the old offer of Rs 8110 crores made in the first auction held on 21 December.

The Committee of Creditors (CoC) of Reliance Capital has now decided to hold the second round of auction on 4 April.

However, Torrent Investments participation in the second round is still in doubt after it has expressed on Sunday its reluctance to be part of the auction.

On 26 March 2023, we had reported that Reliance Capital might be staring at liquidation after the two bidders left in the fray – Torrent and Hinduja Group – might not go in for the second round of auction with the existing terms and conditions.

Torrent, who made a bid of Rs 8640 crores in the first auction, had termed IIHL’s post auction revised bid of Rs 9000 crores as invalid, and challenged IIHL’s revised bid and the second round of auction as well in the NCLT.

NCLT had ruled in favour of Torrent, but NCLAT overturned NCLT ruling and allowed the lenders of RCAP to go ahead with a second round of auction. Torrent approached SC to seek stay on the NCLAT order, but the apex court did not offer any relief to the company.

Cosmea Financial and Piramal, who had submitted binding bids for Reliance Capital in November Last year, have written to the Administrator seeking refund of their Earnest Money Deposit (EMD) of Rs 75 crores each, as both the companies do not wish to further participate in the ongoing resolution process of RCAP.

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