Ruchi Soya’s lenders have asked Patanjali Ayurved and Adani 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 Patanjali had made an offer to acquire Ruchi Soya for Rs 43 billion, which is around 30 per cent higher than the offer made by Adani at Rs 33 billion.
This is not an invitation for a second round of bidding as that would entail fresh bids from other companies but instead Patanjali and Adani have been asked to submit updated bids to be in compliance with the Insolvency and Bankruptcy Code (IBC) rules and procedures. Ruchi Soya, the edible oil producer, owes creditors Rs 120 billion and was admitted for insolvency 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, crude palm kernel oil and palm kernel cake.