Torrent Group Emerges Top Bidder For Reliance Capital As per an order of the National Company Law Tribunal (NCLT), lenders have to complete the resolution process of Reliance Capital by January 31, 2023
By Shrabona Ghosh •
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As part of the resolution process,Torrent Group with an offer of INR 8,640 crore has emerged as the highest bidder in the e-auction held for Reliance Capital.
According to media reports, the Hinduja group also participated in the auction; Oaktree, which was also in the race, did not take part in the first phase. This move would help Torrent enter into financial services.
The Committee of Creditors (CoC) fixed a floor value of INR 6,500 crore for the auction. Further, the increments in the auction process for the second and third rounds have been set at INR 1,000 crore each.The decision of ascending e-auction has been taken at the behest of LIC and EPFO, which together control 35 per cent of the voting rights in the CoC, reported PTI.
As per an order of the National Company Law Tribunal (NCLT), lenders have to complete the resolution process of Reliance Capital by January 31, 2023. Reliance Capital was sent for debt resolution in November last year under the Insolvency and Bankruptcy Code, 2016.
The Reserve Bank of India (RBI) on November 29, 2021 superseded the board of directors of Reliance Capital Ltd under Section 45 IE of the Reserve Bank of India Act, 1934 and appointed Shri Nageswara Rao Y as its administrator with effect from November 29, 2021.
Reliance Capital Limited (RCL) was incorporated in 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Ltd. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.
