Hinduja Group bidder for Reliance Capital
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, both of which had previously stated their intention to participate in the process, did not submit any bids. According to a source close to the situation, Torrent took part in the mock auction exercise and pre-auction talks but did not end up putting a bid.
The participation barrier in the auction was fixed at Rs 9,500 crore, including Rs 8,000 crore as upfront cash.
Lenders had informed the competitors that they would only discuss an enhanced offer with the highest bidder, which in this case was the Hinduja company.
Torrent Investments submitted the highest offer of Rs 8,640 crore in the first auction, held in December, followed by Hinduja Group at Rs 8,110 crore. Hinduja responded within 24 hours.