The Committee of Creditors of Reliance Capital may conduct a fresh round of auction with at least two bidders submitting revised bids after the deadline for the last round ended.
At the end of the last round, the bid placed by Torrent was the highest, but then the Hinduaj group submitted a fresh bid after the deadline got over. Subsequently, Torrent also upped its bid to counter Hinduja’s offer, even as the former filed a plea in the NCLT to reject the latter’s bid.
Sources told businessline that the lenders may call for fresh bids to give everyone another chance to make higher offers. “The RCap COC will meet on Monday (January 9) to vote on the proposal of conducting a second round of challenge mechanism,” said a source.
“The bids submitted by Torrent and Hinduja are far below the liquidation value and fair value fixed by the independent valuers. So a second round may fetch higher bids,” the source said.
The liquidation value of Reliance Capital is pegged at around ₹13,000 crore and its fair value is ₹17,000 crore. Torrent has placed a revised all-cash bid of ₹8,640 crore and the Hinduja-backed IIHL bid is at ₹8,110 crore. There is an additional cash offer of ₹900 crore by IIHL.
Sources said, the second challenge mechanism round will be conducted with a reserve price of ₹9,500 crore, as against the minimum threshold value of ₹6,500 crore in the first round that concluded on December 21, 2022.
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