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In the first round of debt-ridden auctions Reliance Capital, Torrent Group The highest bidder.
The Ahmedabad-based group bid for Rs 8,640 crore Anil Ambani The group’s NBFC company, reported on Wednesday.
The second highest bid Hinduja group. Racing company Oaktree also did not participate in the first stage.
The Cosmea Piramal consortium had already withdrawn from the bidding process.
Reliance Capital is the third largest NBFC against which the RBI has initiated insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The other two are Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
The Committee of Creditors (CoC) has fixed the floor price for the auction at Rs 6,500 crore. According to sources, the increase in the second and third phase auctions is pegged at Rs 1,000 crore each.
Under the NCLT order, lenders have to complete the resolution process of Reliance Capital by January 31, 2023. A PTI report said that this is the first time e-auction of this scale is being held for settlement of NBFC under IBC.
Upgrading e-auction has been decided LIC And EPFO controls 35 per cent voting rights in the CoC.
The RBI had replaced Reliance Capital’s board on November 29 last year following payment lapses and governance issues.
Subsequently, Nageswara Rao Y was appointed as Administrator of the Company’s Corporate Insolvency Resolution Process (CIRP).
In February 2022, the administrator invited interest for sale of the troubled NBFC.
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