Torrent Investments Not Participating in 2nd Auction for Reliance Capital; Hinduja sole bidder

Torrent investments reportedly informed lenders Trust Capital that it is not willing to participate in the auction to sell the financial services company.

This is likely to hurt the process of maximizing the return on sales because only the Hinduja group can stay in the fight.

Earlier, while Torrent Investments opposed the extension of the auction, Torrent Investments had requested guidance from Nageswara Rao Y, manager of Reliance Capital, in a letter to RBI Deputy Governor M. Rajeshwar Rao.

The letter stated that the challenge process had been completed on December 21, 2022, with the administrator’s email to Torrent Investments confirming the NPV bid of Rs 8,640 crore as the highest bid.

However, Torrent Investments was made aware that a competing resolution applicant Hinduja Group had late submitted a revised financial proposal on December 22 after completion of the challenge process on December 21 and after learning that Torrent Investments as the highest bidder to had come forward.

When repeated Supreme Court rulingsvalue maximization was believed to be a key factor in CoC approval of a plan.

The only resolution made for a financial services firm under RBI Section 227 special powers was DHFL, which was won by Piramal Group.

In that case Adani groupwhich was not even a resolution applicant was admitted by CoC because it offered the highest value to the Piramal bid.

ALSO SEE: Desk bombing, monastic fashion and other emerging workplace trends
According to the Kotak report, the clipping of cases resolved through IBC is not very encouraging