NEW DELHI: The corporate insolvency resolution process of Reliance Capital hits another roadblock as Torrent Group gets a stay from the Mumbai bench of the National Company Law Tribunal (NCLT) against Hinduja Group’s revised bid for the erstwhile Anil Ambani Group company.
NCLT has directed the administrator not to present Hinduja Group’s revised offer before the committee of creditors (CoC). Hinduja Group revised its Reliance Capital bid price to Rs 9,500 crore on December 23, 2022. It had earlier bid Rs 8,110 crore in the e-auction that was held on December 21, 2022.
Torrent group on Tuesday moved NCLT against Hinduja’s revised bid that came after the e-auction was over. Torrent Group emerged as the highest bidder in the e-auction with a total bid of Rs 8,640 crore, of which Rs 4,000 crore is to be paid upfront. Rest 55% bid price is being offered at zero interest to lenders of RCap as deferred payment to be paid in three equal instalments in the 3rd, 4th and 5th years. Hindujas, on the other hand, is offering Rs 8,800 crore upfront in cash.
Sources said RCap lenders led by LIC and EPFO with 35% voting rights favour a bid with higher upfront cash payment. Therefore, despite emerging as the highest bidder in the e-auction, it was suspected that lenders would favour Hindujas. RCap had received four binding bids on November 28, which was last date for submitting bids.
A consortium of Cosmea Financial and Piramal has submitted the highest bid of Rs 5,231 crore. Hindujas with Rs 5,060 crore has emerged as the second highest bidder, followed by Torrent (Rs 4,500 crore) and Oaktree (Rs 4,200 crore).