Torrent emerges as highest bidder for RCap with Rs 8,640 crore; details here

Torrent Group has emerged as the highest bidder for debt-laden Reliance Capital (RCap) in an e-auction process held on Wednesday. The company bid Rs 8,640 crore for the company, according to reports. The Hinduja Group was the only other participant In the e-auction and offered Rs 8,110 crore to RCap’s committee of creditors (CoC). According to reports, the CoC will study the final details of the resolution plan before finalizing the winning bid today, 22 December. The details that would be looked at include the cash component offered by Torrent and Hinduja. While a consortium of Cosmea Financial and Piramal Group had pulled out of the e-auction on Tuesday, Oaktree Capital stayed away from the race on Wednesday, reducing the number of bidders to two. The Cosmea-Piramal consortium pulled out of the race, stating that the changes in the resolution process had made acquiring RCap “unviable”. During the time of submission of binding bids, Hinduja had placed a bid of Rs 5,060 crore. The bid included an upfront payment of Rs 4,100 crore, with a net present value (NPV) offer of Rs 4,800 crore. Torrent had placed a Rs 4,500 crore bid, with an upfront payment of Rs 1,100 crore and an NPV amounting to Rs 4,200 crore. Oaktree Capital had previously hinted at exiting the ongoing resolution process after CoC didn’t accept its requests for additional information. The firm had sought RCap’s financial results till 31 December 2022 and asked to extend the date of the e-auction to 31 January 2023. The CoC had called the demands of Oaktree impractical and rejected them. According to an earlier National Company Law Tribunal (NCLT) order, lenders need to complete RCap’s resolution process by 31 January. The CoC had called for the e-auction for RCap last week after they found that the initial bids were less than the liquidation value. The bidders were asked by the lenders to change the bid price else the firms would go in for liquidation. The CoC and bidders agreed to conduct the auction, which happened on Wednesday. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.