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Lenders have approved a second round of auction to sell the assets of bankrupt Reliance Capital. In a voting held since Monday, all lenders voted in favour to hold a second round for value maximisation.
In the first round, Ahmedabad-based Torrent group emerged as the highest bidder by offering Rs 8,640 crore. Hinduja bid Rs 8,110 crore during the auction and Rs 9,000 crore to lenders in a separate email later.
Torrent then moved a court seeking to stop a second round, saying post-auction offers should not be entertained. The National Company Law Tribunal is expected to give its order on Thursday. If the NCLT approves, the second round of auction will be held next week.
Piramal-Cosmea and Oaktree are eligible to participate in the second auction, apart from Torrent and the Hinduja group. A source said a second-challenge mechanism round will be conducted with a reserve price of Rs 9,500 crore.
This is against the minimum threshold value of Rs 6,500 crore in the first round that concluded on December 21. The second round of challenge mechanism is also likely to have a threshold of a minimum cash upfront payment of Rs 8,500 crore for the bidders.
This will give Torrent an advantage of Rs 640 crore, as it has already made an all-cash offer of Rs 8,640 crore, said a source.
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