Hinduja Group bids Rs. 9000 Cr for Reliance Capital
- ByStartupStory | December 24, 2022
The Hinduja Group revised its bid for debt-laden Reliance Capital (RCap) on Friday, offering a net present value (NPV) of Rs.9,000 crore, which was higher than Torrent Group’s bid of Rs. 8,640 crore.
The revised bid offer, however, was made after the e-auctions ended on Wednesday, which Torrent describes as a “blatant and arbitrary violation” of the challenge process.
“Having conducted the challenge process and having concluded it by communicating the highest NPV amount through the email (to Torrent), the administrator and CoC have determined and concluded the value maximization process. It is, therefore, patently illegal for the administrator and CoC to entertain any bid which comes after conclusion of the challenge process and in deviation to the financial proposal submitted by such resolution applicant during the challenge process,” a letter by Torrent Group said.
Hindujas’ renewed offer, made through a group company called IndusInd International Holdings, includes an initial cash payment of Rs. 8,800 crore. According to sources close to the situation, the Hinduja Group informed the committee of creditors (CoC) of its decision on Friday.Because the e-auction has already ended, the CoC will examine the offer and seek legal advice, they added.
Hinduja Group was the only other bidder during the e-auction, with a bid price of around Rs. 8,500 crore. KPMG (adviser to the insolvency process) and Deloitte (adviser to the RBI-appointed administrator) are scheduled to meet soon to make a decision on the revised bid.
Torrent, on the other hand, is likely to object to the new bid and, if necessary, take legal action.
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