Reliance Capital's debt-plagued Committee of Creditors (CoC) will meet on Tuesday to review proposals made by Torrent Group and Hinduja Group as part of the bankruptcy resolution process.
ahmedabadThe country-based Torrent Group has made an offer of Rs 8,640 crore to buy Reliance Capital.
The approval would mark the company's debut in the financial services industry.
In an online auction conducted under the Challenge Mechanism, Hinduja offered Rs 8,110 crore, while Torrent offered a resolution plan for Reliance Capital (RCL) with a net present value of Rs 8,640 crore. For the auction that took place on December 21, the CoC had set a minimum value of Rs 6.5 billion.
Hinduja reportedly submitted a new settlement plan with a bid of Rs 9,000 crore and 100% upfront payment after the e-auction ended. Torrent Group, by contrast, allegedly only offered Rs 3,750 crore as an initial payment, which is 54 percent less than Hinduja's offer.
LIC and EPFO, which together hold 35 percent of the voting rights in the CoC, called for the electronic auction to take place.
The resolution of the RCL case, which has already been postponed for more than a year, has a deadline of March 31, 2023, according to the National Company Law Tribunal (NCLT).
Due to payment defaults and major governance difficulties, the Reserve Bank of India (RBI) replaced the RCL board on November 29 last year.
The RBI selected Nageswara Rao Y to oversee the company's Corporate Insolvency Resolution Process (CIRP).
RCL is the third major NBFC to have had IBC bankruptcy proceedings initiated by the central bank. Srei Group NBFC and Dewan Housing Finance Corporation were the remaining two. At NCLT's Mumbai bank, the RBI then filed an application for the initiation of CIRP against the company.
In February this year, the RBI-appointed trustee issued a call for expressions of interest.
