Torrent Investments on Friday proposed to pay its entire bid of ₹8,640 crore upfront for acquiring Anil Ambani-promoted Reliance Capital, doubling its immediate payment offer made a day after the auction ended late in December, two people aware of the development told ET. Similarly, the Hinduja Group offered ₹8,110 crore upfront and ₹800 crore in deferred payments for the bankrupt financial services company, the people cited above said.
One lender told ET that the committee of creditors to Reliance Capital will evaluate both plans with regard to the terms and conditions and proposed payment structures. Lenders may either ask the companies to improve the resolution plans or may invite fresh bids since both offers are below the liquidation value – pegged between ₹12,500 crore and ₹13,000 crore. The revised Hinduja offer is 28% below liquidation value, while Torrent’s plan misses that threshold by 31%.
Torrent and Hinduja have structured their resolution plans such that the net present value (NPV) is pegged at the respective bids they made at the December 21 auction. This is done to comply with the terms of the auction, the people said.