homebusiness NewsConsidering Hinduja’s revised offer is a violation of process: Torrent Investments to RCap Admin
Considering Hinduja’s revised offer is a violation of process: Torrent Investments to RCap Admin
Torrent had emerged as the highest bidder under the challenger process by offering Rs 8,640 crore. on December 21, 2023. However, Hinduja subsequently submitted a revised offer worth Rs 9,000 crore in NPV terms.
Torrent Investments Private Limited, which emerged as the top bidder to acquire Anil Ambani’s Reliance Capital (RCap) by the auction deadline, had objected RCap’s Administrator from considering the revised offer from the Hinduja Group and stated that entertaining the revised offer would be a violation of process.
This comes after Torrent Group emerged as the highest bidder under the challenger process by offering Rs 8,640 crore on December 21, 2023. However, Hinduja subsequently submitted a revised offer with a higher amount in NPV terms.
However, Hinduja subsequently submitted a revised offer worth Rs 9,000 crore in NPV terms. Hindujas submitted their bid after the e-auction process ended,
Hinduja Global has submitted a bid for debt-ridden Reliance Capital to lenders, topping the offer made by Torrent Investment in the auction conducted as part of its resolution process, people in the know of the matter told CNBC-TV18.
According to the sources, Torrent Investments had termed Hinduja’s revised offer as 'patently illegal'. Torrent Group also has hinted at legal action if creditors don’t accept its offer.
Hinduja Group's this move would delay the resolution process as the committee of creditors (CoC) would be keen on getting the higher price. This committee was led by LIC and EPFO.
The Committee of Creditors is set to meet on January 3, 2024, to consider bids and decide on voting. Moreover, lenders would be reviewing the bids and analysing the fine print.
The offers for RCap have almost doubled in the last few weeks. Piramal-Cosmea financial had emerged as the highest bidder with their offer of Rs 5,231 crore during the first round of bidding in November.
Interestingly, the current highest offer still falls short of Reliance Capital’s liquidation value of nearly Rs 13,000 crore.
(Edited by : Vivek Dubey)
First Published: Dec 24, 2022 1:31 PM IST
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