homebusiness Newscompanies NewsTorrent Group emerges as the highest bidder for debt ridden Reliance Capital
business | Dec 21, 2022 11:46 AM IST

Torrent Group emerges as the highest bidder for debt ridden Reliance Capital

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Hinduja Group was the second highest bidder and Oaktree did not participate in the auction. The Cosmea-Piramal consortium had already pulled out of the bidding process.

The Torrent Group on Wednesday emerged as the highest bidder for debt-ridden Reliance Capital in the auction conducted as part of its resolution process. Ahmedabad-based Torrent Group submitted a bid of Rs 8,640 crore for acquiring the NBFC firm set up by the Anil Ambani Group, PTI said, quoting sources.

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Hinduja Group was the second highest bidder and Oaktree did not participate in the auction. The Cosmea-Piramal consortium had already pulled out of the bidding process. The Committee of Creditors (CoC) fixed a floor value of Rs 6,500 crore for the auction.
If Torrent Group's bid is accepted, it will mark the groups entry into the financial services space.
The e-auction for the sale of Reliance Capital under the insolvency and bankruptcy code kicked off on Wednesday, sources had told CNBC-TV18. Sources had suggested that Cosmea Financial Holdings — which partnered with Piramal Enterprises for the bidding — has written to CoC, indicating it may not participate in the auction.
The Piramal-Cosmea consortium had earlier offered Rs 5,231 crore, the highest among four offers for RCap as a whole. The three other bidders— Hinduja Global, Oaktree Capital, and Torrent Investments —  had offered Rs 4,000 crore to Rs 4,500 crore.
The financial creditors have claims of Rs 30,879 crore against Reliance Capital.
According to people in the know, the floor price for the bid was fixed at Rs 6,500 crore by creditors. Each auction had a threshold bid amount to continue participation. Increments for the second and third rounds were set at Rs 1,000 crore each. The increment for the fourth round was fixed at Rs 500 crore, Rs 250 crore for the fifth round and onward.
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