Prospective bidders of Reliance Capital seek clarity, assurances of finality

Two potential debt-laden Reliance Capital (RCap) bidders have sought clarity and assurances that their demands must be met before the second electronic process, now scheduled for April 26. RCap's Committee of Creditors (CoC) will meet on Monday. to discuss bidders' concerns and finalize the bidding process.

Bidders: Based in Gujarat torrent group and IndusInd International Holdings Ltd (IIHL) – have categorically stated that they have reservations about certain conditions in the second proposed electronic auction. They want the issues resolved "immediately" or they would not participate in the extended challenge mechanism, sources close to the development said.

movement comes later RCapThe 's CoC expressed their inability to ensure "finality" of the insolvency process through the second electronic auction, as they would opt for additional negotiations for value maximization. Another round of multiple electronic auctions would further delay the insolvency proceedings of the former Anil Ambani group company.

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During the first electronic auction, Torrent Group had placed its bids through a group company, Torrent Investments, while Hinduja Group's was through the IIHL.

The bidders had tried to include a clause that the second electronic auction would be the final one, which was opposed by RCap's largest lenders, Life Insurance Corporation of India (driver's license) and the Employee Provident Fund Organization (EPFO). The lenders, LIC and EPFO, who have combined voting rights of 30% in the CoC and combined admitted claims of ₹8,200 crore, wanted multiple rounds if auction prices were below liquidation value.

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Bidders had also sought "transparency" in the expanded challenge mechanism, such as information on the number of bidders participating in the round and the value of their bids. In addition, the electronic auction should be conducted even if there is only one bidder in the running, a 'zero date' payment policy from the date of the no-objection certificates and for 'force majeure' changes in terms, among others. demands.

Last week's meeting of the CoC adjourned with lenders "undecided" on most applications, while a 'do not overthrow bids' (accept bids outside of electronic auction) demand was approved.