Modifying its offer to acquire Reliance Capital Ltd (RCL), Torrent Group on Friday offered to pay upfront the previously committed offer amount in lieu of deferred payment.
According to PTI sources, Ahmedabad-based Torrent Group is offering to pay the full bid amount of Rs 8,640 crore as initial cash while maintaining the Net Present Value (NPV) of Rs 8,640 crore quoted during the auction.
Earlier, the sources said, it had made an offer of Rs 3,750 crore in cash up front with the balance in deferred payments.
In accordance with the process established by the lenders, the payment terms and other terms and conditions of the resolution plans were subject to negotiations between the lenders and the bidders after the auction.
Hinduja Group, the developer of IndusInd Bank, revised its offer from Rs 8,110 crore to Rs 9,000 crore a day after the electronic auction.
Following this, Torrent Group moved the Mumbai bank from NCLT, which halted the resolution process.
This is the first time that an electronic auction of this scale has been conducted for the resolution of a NBFC (non-bank financial company) under the Insolvency and Bankruptcy Code (IBC).
The electronic auction decision was made at the behest of LIC and EPFO, which together control 35 percent of the voting rights in the Creditors' Committee (CoC).
The Reserve Bank of India (RBI) replaced RCL's board of directors on November 29 last year due to payment defaults and serious governance problems.
The RBI appointed Nageswara Rao Y as administrator in connection with the company's Corporate Insolvency Resolution Process (CIRP).
RCL is the third major NBFC against which the central bank has initiated bankruptcy proceedings under IBC.
The other two were Srei Group NBFC and Dewan Housing Finance Corporation. The RBI subsequently filed a CIRP commencement application against the company at NCLT's Mumbai bank.
In February this year, the RBI-appointed trustee invited expressions of interest in the sale of RCL.
With PTI Inputs
