Torrent Investments has offered the entire bid amount to the lenders of Reliance Capital Ltd. 8,640 crore after financial advisors differed on the net present value of the assets of the bankrupt company, said a person familiar with the development.
Torrent emerged as the highest bidder in the e-auction process on 21 December.
The group offered a bid of Net Present Value (NPV) value 8,640 crore, of which 4,000 crores and the rest 4,640 crore at zero interest in 3, 4 and 5 years.
Hinduja revises his bid a day after e-auction to Rs 9,000 crore 8,110 crores. Hinduja, which came second during the auction process, offered cash upfront 8,800 crores.
Challenging the move, Torrent Group approached the National Company Law Tribunal, which asked the lenders to put Hinduja Group’s post-auction offer on hold till the final hearing.
Torrent claimed that Hinduja’s revised offer after the e-auction was illegal and non-compliant.
“We have not revised the net present value like Hinduja. We have converted the entire NPV to cash upfront only because there was a difference of opinion.
On NPV basis, Torrent’s offer is still lower than Hinduja’s revised offer 9,000 crores.
Torrent Group’s latest move will strengthen its position after Hinduja bids.
The auction process for Reliance Capital has seen several twists and turns, with two frontrunners Oaktree and the Cosmia-Piramal consortium pulling out of the race at the last minute.
Reliance Capital is the third large non-banking financial company against which the Reserve Bank of India (RBI) has initiated insolvency proceedings under the Insolvency and Bankruptcy Code, or IBC, along with the Srei Group and Dewan Housing Finance Corporation Limited (DHFL). , In November 2021, RBI refers Reliance Capital for bankruptcy resolution after defaulting on bond price 24,000 crores. Subsequently, Nageswara Rao Y was appointed as the administrator for the corporate insolvency resolution process of the firm.
Reliance Capital is the third large non-banking financial company against which the Reserve Bank of India (RBI) has initiated insolvency proceedings under the Insolvency and Bankruptcy Code, or IBC, along with Srei Group and DHFL. In November 2021, RBI refers Reliance Capital for bankruptcy resolution after defaulting on bond price 24,000 crores. Subsequently, Nageswara Rao Y was appointed as the administrator for the corporate insolvency resolution process of the firm.
Reliance Capital shares rose 5 per cent on Friday 10.71.
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