Reliance Capital Second Round Auction: The highest bid of Rs 9650 crore has been submitted for the second round bid of Anil Ambani’s Reliance Capital. Only one firm participated in this bid.
Reliance Capital Auction: The second round of bidding for Anil Ambani’s debt-ridden company has been done. Several bidders were involved in the race to buy it, but a report claimed that Hinduja Group has submitted the sole bid for Reliance Capital. It has offered Rs 9650 crore.
Hinduja Group company IndusInd International Holdings Reliance Capital has made an upfront cash offer of 9,650 crores to buy it. At the same time, two more companies were involved in this auction, which have not even submitted the bid. Apart from Hinduja, Torrent Investments and Oaktree Capital were also involved in the race. The two did not submit bids, although they had previously indicated that they would participate in the process.
According to the Economic Times report, Torrent participated in the mock auction drill on Wednesday and was also involved in pre-auction discussions, but did not submit the bid. Lenders had set a limit of Rs 9,500 crore for participating in the auction, which included a minimum of Rs 8,000 crore as cash upfront.
Hinduja Sole Bidder
Hinduja Group made an offer of Rs 9,510 crore during the first round and took it to Rs 9,650 crore in the second round. Thereafter no one submitted a counter bid, due to which it was the only bidder to be the highest bidder. Explain that Hinduja’s offer is equivalent to 41 per cent debt recovery for lenders.
Anil Ambani’s company has a balance of Rs 400 crore
Hinduja’s bid is about Rs 1,000 crore more than what was offered by Torrent in the first round of auction in December. The financial services company founded by Anil Ambani has a cash balance of around Rs 400 crore. Thus, the recovery for the lenders would be above Rs 10,000 crore. However the realization is still less than the liquidation value.
