Indeed, it would be difficult for Pyramid The companies will now participate in the auction process scheduled for Wednesday. This is primarily because Piramal's binding bid is for a Reliance Capital entity, while only bidders offering to buy the entire company are allowed to participate in the challenge auction process. In addition, Piramal's binding offer was made with Cosmea, which is not participating in any further rounds of the sale process.
In a joint offer, Piramal Enterprises offered to acquire the P&C business, while Cosmea would buy the remaining units of the central investment company (CIC). The Piramal-Cosmea team's staggered pay offer of Rs 5,231 crore was the highest among the binding offers received on 28 November. Torrent Investments, Hinduja Global and Oaktree Capitalare other bidders for the CIC in the process of business insolvency.
The administrator informed the Piramal-Cosmea team that they would not be allowed to review their financial proposal after the completion of the challenge mechanism.
Cosmea and manager of Reliance Capital Nageswara Rao And he did not respond to ET's request for comment. Piramal may be contacted for immediate comment.
In a letter to the administrator about his departure, Cosmea has stated: "The outline of the process has been significantly altered and a challenge mechanism has been introduced, which does not meet our business objective," said one of the people quoted above.
The administrator informed Reliance Capital lenders of Cosmea's exit from the fray at a creditors' committee meeting on Tuesday. Lenders are expected to go ahead with the auction despite the highest bidder dropping out of the race, the people cited above said.
