Anil Ambani’s debt-ridden company Reliance Capital finally got sold today. Reliance Capital has been bought by Hinduja Group for Rs 8600 crore. The Hinduja Group on Wednesday won the race for Reliance Capital Ltd with a bid of Rs 8,600 crore. According to banking sources, Hinduja’s major investment firm emerged as the highest bidder for Reliance Capital in the auction that began on Wednesday morning.
The Committee of Creditors (CoC) had fixed a floor price of Rs 6,500 crore for the first round of the auction. The value for the second and third rounds was Rs 7,500 crore and Rs 8,500 crore, respectively. In subsequent rounds, the amount had to be increased to Rs 500 crore and Rs 250 crore respectively.
The board of directors was superseded by the Reserve Bank
The board of directors of Reliance Capital, operating as a non-banking financial company (NBFC), was superseded by the Reserve Bank in November last year, with Nageswara Rao Y being appointed as the administrator. RCL is the third NBFC to go for auction under the Insolvency Code. Prior to this, Srei Group and DHFL have been auctioned. This is the first time that an e-auction of a debt-ridden company has taken place on such a large scale.
Torrent group made the highest bid
At the same time, according to the news of the news agency language, the Torrent Group made the highest bid on Wednesday in the auction held under the resolution process of debt-ridden Reliance Capital. Sources said Ahmedabad-based Torrent Group has made a bid of Rs 8,640 crore to acquire the non-banking financial company (NBFC) set up by the Anil Ambani group. He informed that Hinduja Group has placed the second highest bid, while Oaktree did not participate in the auction round.
The Cosmic Piramal alliance was already out of the bidding process. Sources said the Committee of Creditors (CoC) had fixed a lower price limit of Rs 6,500 crore for the auction. The lenders have to complete the resolution process of Reliance Capital by January 31, 2023, according to an order by the National Company Law Tribunal (NCLT).