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Reliance Capita: Hinduja Group emerges highest bidder with Rs 9,650 crore offer

Apr 27, 2023

By: BlinkX Research Team

A Hinduja Group firm on Wednesday emerged as the highest bidder with an offer of Rs 9,650 crore to take over debt-ridden Reliance Capital in the second round of auction, sources said.

According to the media reports, the bid by IndusInd International Holdings Ltd (IIHL) is higher than Rs 8,640 crore offer made by Torrent Investments in the first round of auction held in December last year.

In Wednesday’s auction, Oaktree along with Torrent Group, which had approached the Supreme Court in an attempt to stall the second round, did not participate. 

The Committee of Creditors (CoC) had set a minimum bid amount of Rs 9,500 crore for the first round and Rs 10,000 crore for the second round, with an additional Rs 250 crore for subsequent rounds.

Further, the CoC had also put a condition that all bids must have a minimum of Rs 8,000 crore upfront cash payment, sources said, adding, the IIHL bid of Rs 9,650 crore is an all upfront cash bid.

The second round of auction was held on Wednesday after the Supreme Court allowed the lenders to go ahead with the extended challenge mechanism in order to maximise the recovery from the sale of Reliance Capital’s assets.

However, according to sources, any decision on the resolution of Reliance Capital by the CoC will be subject to the outcome of the SC’s judgement in the appeal filed by Torrent Investments.

Source: Media reports