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Patanjali, Adani submit revised bids to acquire bankruptcy-hit Ruchi Soya

Ruchi Soya has decided to conduct Swiss challenge method to maximise the asset value of the bankruptcy-hit firm, is expected to open the bids on Tuesday

Press Trust of India  |  New Delhi 

Patanjali


Patanjali

Baba Ramdev-promoted and group on Monday submitted their revised bids to acquire to bankruptcy-hit firm as lenders of the edible oil firm have decided to hold a fresh round of resolution process to maximise asset value, said sources.

The (CoC) of Ruchi Soya, which has decided to conduct method to maximise the asset value of the bankruptcy-hit firm, is expected to open the bids on Tuesday, they added.

When asked about the development in the bidding process, Patanjali spokesperson S K Tijarawala said: "We have submitted our revised bids".

CoC in its meeting held on May 30 had set the stage for an aggressive bidding between the two suitors for to maximise the value of the assets, sources said, adding that the CoC in consultation with the independent evaluator has decided to adopt a method.

Under the system, which is now used by various government wings for tenders, lower bidders are given chance to match the highest bidder and if matched then the highest bidder is asked to improve its bid.

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Earlier, Patanjali had emerged as the highest bidder with an offer of around Rs 4,300 crore and has a commitment of Rs 1,800 crore capital infusion into the company, sources said, adding that Wilmar, which sells edible oils under Fortune brand, has made a bid of around Rs 3,300 crore.

An Executive Committee comprising of representatives from IDBI, SBI, Stanchart and Corporation Bank will conduct the Swiss challenge and conclude the process by mid-June.

Apart from Patanjali and Adani, that had shown interest in acquiring were Wilmar, Emami Agrotech and Godrej Agrovet.

Patanjali Ayurveda already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging and it wants to further expand into cooking oil business.

Ruchi Soya, facing the insolvency proceedings, has a total debt of about Rs 12,000 crore. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich,

In December 2017, Ruchi Soya Industries Ltd entered into the (CIRP) and Shailendra Ajmera was appointed as interim resolution Professional (IRP).

The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank Ltd, under the Insolvency and Bankruptcy Code.

First Published: Mon, June 11 2018. 23:01 IST
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