Any decision on the resolution of RelCap by CoC will be subject to the outcome of the SC judgment on appeal presented by Torrent Investments
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Mumbai
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Posted on 27.04.23, 05:25
A Hinduja Group company emerged as the highest bidder on Wednesday with an offer of Rs 9,650 crore to take over debt-ridden Reliance Capital in the second round of the auction, the sources said.
The offer from IndusInd International Holdings Ltd (IIHL) is higher than the Rs 8.64 billion bid made by Torrent Investments in the first round of auction held in December last year.
The other two suitors, Torrent Investments and Oaktree, did not participate in the second round of the auction, the sources said.
An email sent to Hinduja Group for comment went unanswered.
The Committee of Creditors (CoC) had set a minimum offer amount of Rs 9,500 crore for the first round and Rs 10,000 crore for the second round, with an additional Rs 250 crore for subsequent rounds.
The CoC had also made it a condition that all offers must have a minimum advance cash payment of Rs 8,000 crore, the sources said, adding that the IIHL's offer of Rs 9,650 crore is a cash-up-front offer.
The second round of the auction took place on Wednesday after the Supreme Court allowed lenders to go ahead with the extended challenge mechanism to maximize the recovery from the sale of Reliance Capital's assets.
However, according to the sources, any decision on the resolution of Reliance Capital by the CoC will be subject to the outcome of the Supreme Court ruling in the appeal filed by Torrent Investments.
Reliance Capital's resolution process became embroiled in litigation after the first auction round.
After the closing of the first round, the Hinduja Group firm submitted the post-auction offer.
IIHL offered a revised cash bid of Rs 9,000 crore after the end of the auction against a bid of Rs 8,110 crore in December. This was done despite the fact that the lenders had expressed their intention to hold the second round of auctions.
This post-auction offer is being challenged by Torrent Investments in the Supreme Court, as it was the highest bidder in the first auction round.
Torrent disputed the IIHL's revised bid and the lenders' decision to hold the second round of auction at NCLT Mumbai. The NCLT ruled in favor of Torrent. The lenders moved the NCLAT.
