Hindujas emerge highest bidder with Rs 9,650 crore bid for Reliance Capital
Reliance Capital corporate Insolvency Process has come closer to completion with Hinduja Group firm IIHL emerging as the highest bidder with Rs 9,650 crore bid in the second round of the auction today.
Torrent Investments and Oaktree did not participate in the auction, according to sources.
The CIRP of Reliance Capital has seen several delays and extension with lenders looking to maximise the realisation. So, they went for second round of auction after Torrent Investments emerged as the highest bidder with Rs 8640 crore in the first round of auction that held on 21 December 2022.
Torrent Investments fought tooth and nail against the lenders holding the second round of auctions.
Both Torrent Group and Hinduja had revised their bid price after the first round of e-auction on 21 December 2022. Torrent group revised its bid and was offering Rs 8,640 crores as upfront cash. Earlier, the company was offering Rs 3,750 crores as upfront cash and balance in deferred payment.
Hinduja group revised its bid price for Reliance Capital to Rs 9,500 crore on 23rd December 2022, two days after the first round of the e-auction. Hindujas had earlier quoted Rs Rs 8,110 crore in the e-auction. As per Hinduja’s revised bid, they agreed to pay Rs 8,800 crore upfront.
However, the CoC decided to hold a second round of challenge mechanism as the bids submitted by Torrent and IIHL were far below the liquidation value and fair value fixed by the independent valuers. The Liquidation Value of Reliance Capital is pegged at around Rs 13,000 crores and Fair Value is Rs 17,000 crores.
Torrent had challenged IIHL’s revised bid and the second round of auction in the NCLT.
NCLT had ruled in favour of Torrent, but NCLAT overturned NCLT ruling and allowed the lenders of Reliance Capital to go ahead with the 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.
Also See: Link of all Reliance Capital updates
