CORPORATE

At Rs 9,650 cr, Hinduja Group company highest bidder for Reliance Capital

A Hinduja Group firm on Wednesday emerged 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. The bid by IndusInd International Holdings (IIHL) is higher than Rs 8,640 crore offer made by Torrent Investments in the first round of auction held in December last year. 

The other two suitors – Torrent Investments and Oaktree – did not participate in the second round of auction, sources said. 

An e-mail sent to the Hinduja Group for comment remained unanswered. 

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. 

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, that the IIHL bid of Rs 9,650 crore was an all upfront cash bid. 

The second round of auction was held on Wednesday after the Supreme Court had 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 Supreme Court’s judgement in the appeal filed by Torrent Investments. 

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