Reliance Capital Auction: IIHL, a bidder for Reliance Capital, has said that bidders participating in the auction should give an undertaking that they will not bid outside the challenge mechanism process.
Reliance Capital: Lenders of Reliance Capital (RCAP) will meet today to address the concerns of the bidders ahead of the second round of auction on April 26. Hinduja Group’s Torrent Investments and IndusInd International Holdings Limited (IIHL) have raised several objections to the scheduled auction and its terms.
This is the objection of Torrent Investment and IndusInd International Holdings Limited
Both the bidders, Torrent Investments and IIHL, have reportedly told the Committee of Creditors (CoC) that they are unlikely to participate in the auction until the issues raised by them are settled. Both the bidders seek finalisation, and there is no negotiation on price or terms and conditions after the second round of auction is over.
EPFO and LIC have these objections
On the other hand, the Employees’ Provident Fund Organization (EPFO) and LIC, the two biggest lenders to Reliance Capital, are against giving any such venture.
IIHL and Torrent Investments seek an undertaking from CoC
Both the lenders want to make room for further talks in case the final bid price in the second round of auction falls below the liquidation price of Rs 13,000 crore. EPFO and LIC collectively hold more than 30 per cent voting rights in the CoC.
IIHL has said that the bidders participating in the auction should give an undertaking that they will not bid outside the challenge mechanism process. Similarly, the bidders also want an undertaking from the CoC that any bid outside the challenge mechanism will not be considered by them.
Torrent has requested to declare after each round that how many bidders are participating in the next round and what is their bid price. The Mumbai-bench of the National Company Law Tribunal (NCLT) has extended the deadline for completing the resolution process of RCAP by three months to July 16.
