NEW DELHI: Torrent Group emerged as the highest bidder with Rs 8,640 crore bid for Reliance Capital in the e-auction held on Wednesday. Hinduja Group was at a close number two. Oaktree and the consortium of Cosmea-Piramal didn’t participate in the e-auction.
However, sources said despite emerging as the highest bidder, Torrent Group may not still end up acquiring Reliance Capital assets. “Both Hinduja and Torrent are neck to neck. The NPV (net present value) of the resolution plan will decide the winner. CoC (Committee of creditors) will meet tomorrow and will consider the resolution plans of both Torrent and Hinduja,” said a source close to the lenders.
Not all the bid amount is paid upfront and they come in tranches. Therefore, the CoC will decide at the successful bidder after arriving at the Net Present Value (NPV) of the future payments. The consortium of Cosmea and Piramal Group has pulled out of the bidding process citing significant changes in the contours of the process.
The lenders of RCap last week increased the base price – which was earlier fixed at Rs 5,231 crore – to Rs 6,500 crore for e-auction to be held on Wednesday (December 21, 2022). It was feared that Oaktree would not participate in the e-auction after its demand for extension of the e-auction date was rejected by the CoC. RCap had received four binding bids on November 28, which was the last date for submitting the bids. The highest bid of Rs 5,231 crore has been submitted by a consortium of Cosmea Financial and Piramal.
CoC to decide on successful bidder
Hinduja Group was at a close number two. Oaktree and the consortium of Cosmea-Piramal didn’t participate in the e-auction. However, sources said despite emerging as the highest bidder, Torrent Group may not still end up acquiring Reliance Capital assets