Hinduja Group entity IndusInd International Holdings was reportedly the only bidder for Reliance Capital at the auction, part of its bankruptcy proceedings, that was held on Wednesday. The group reportedly offered Rs 9,510 crore in the first round which was raised to Rs 9,650 crore in the second round.
According to a report in The Economic Times, as there were no counteroffers, the auction process ended. Hinduja’s offer was Rs 1,000 more than what Torrent Investments offered in the first round in December.
Meanwhile, Torrent Investments and Oaktree Capital, who had earlier indicated that they would participate in the process, did not submit any bids. A person in the know told the daily that Torrent participated in the mock auction drill and the pre-auction discussions but did not end up submitting a bid.
The threshold for participation in the auction was kept at Rs 9,500 crore, with Rs 8,000 crore as upfront cash.
Lenders had conveyed to the contenders that they would negotiate an improved offer only with the highest bidder, which in this case was the Hinduja group.
In the first auction held in December, Torrent Investments made the highest offer of Rs 8,640 crore, followed by Hinduja Group at Rs 8,110 crore. Within 24 hours, Hinduja offered a revised bid of Rs 9,000 crore, which was then challenged by Torrent before the National Company Law Tribunal (NCLT).
Also read: Reliance Capital resolution process deadline extended by 3 months to July 16