Mumbai: Reliance Capital lenders have decided to go ahead with the second round of auction on April 4, according to the Supreme Court decision, despite Hinduja group retracting its revised offer, according to three people. so much about the matter.
The Hinduja group submitted a revised offer of $9,000 crores on December 21, a day after the first round of the auction concluded, in which its rival Torrent Group had been declared the highest bidder. Torrent had bid for $8,640 crore, while Hinduja Group had originally offered $8,110 crores. Challenging this, Torrent approached the National Company Law Tribunal, which asked the lenders to hold Grupo Hinduja's post-auction bid on hold until the final hearing.
But an appeals court struck down the order. Torrent then approached the Supreme Court to seek a stay of the National Societies Act Appeal Court's order, but the high court ruled in favor of the lenders, allowing them to hold a second round of auctions.
But in a surprise twist, the Hinduja group told lenders in an informal meeting last week that it wants to go back to the old offer of $8,110 crores.
A banker, one of the three people cited above, said existing bidders, including Torrent Investments and Hinduja Group, will have to outbid the offers submitted in the first round. However, the creditors' committee (CoC) did not set a reserve price for the auction, the banker said.
Although the CoC can continue with the second round of the challenge mechanism, the result of the auction will be subject to the final decision of the Supreme Court.
โHinduja Group is known to have told lenders that it will participate in the auction. However, you must still provide written confirmation of whether or not you keep the $Initial offer of Rs 9000 crore," said the second person quoted above.
The court will rehear the matter in August.
catch all corporate news and updates on Live Mint. download the mint news app to get daily Market Updates & Live business news.
