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Insolvency: Patanjali, Adani asked to submit updated bids for Ruchi Soya

The first round of bidding revealed that Patanjali had made an offer to acquire Ruchi Soya for Rs 43 billion

Advait Rao Palepu  |  Mumbai 

Vedanta may top race for stressed assets

Ruchi Soya’s lenders have asked Ayurved and Wilmar to submit updated bids in lieu of acquiring the stressed firm, a source confirmed the development to Business Standard. The first round of bidding revealed that had made an offer to acquire for Rs 43 billion, which is around 30 per cent higher than the offer made by at Rs 33 billion.

This is not an invitation for a second round of bidding as that would entail fresh bids from other but instead and have been asked to submit updated bids to be in compliance with the and Bankruptcy Code (IBC) rules and procedures. Ruchi Soya, the edible oil producer, owes creditors Rs 120 billion and was admitted for proceedings in December 2017.

After the bids were opened by the committee of creditors last week, Patanjali had emerged the highest bidder in the first round of bidding. While the two firms emerged front-runners to acquire Ruchi Soya, reports suggest that Godrej Agrovet may tie up with Patanjali to bid for the stressed firm. If its bid is successful, Patanjali plans to sell Ruchi Soya’s palm oil plantation assets to a buyer like Godrej Agrovet, which owns 61,700 hectares of plantations, producing crude palm oil, and palm kernel cake.

First Published: Wed, June 06 2018. 07:01 IST