You are here: Home » Companies » News
Business Standard

Adani group highest bidder for Ruchi Soya, but Patanjali is still in race

Baba Ramdev's Patanjali Ayurved, keen on acquiring Ruchi Soya, isn't out of the race yet and will have a right to match Adani Wilmar's offer

BS Web Team  |  New Delhi 

IBC, insolvency
Illustration: Binay Sinha

Adani Wilmar has emerged as the highest bidder for the bankrupt edible oil manufacturer Ruchi Soya, but yoga guru Ramdev-promoted might still have a chance, according to media reports.

Billionaire Gautam Adani's company has offered about Rs 60 billion for acquiring Ruchi Soya, sources told agencies. Patanjali, the only other qualified player in the race, bid for around Rs 57 billion.

The declaration of the winner has yet to come since “banks and the resolution professional (RP) settle conflict of interest issues and the two are allowed to better each other’s offer”, the Economic Times reported, citing two people with direct knowledge of the matter.

ALSO READ: Ruchi Soya case: ANZ Banking Group seeks NCLT intervention

Not over yet

The Committee of Creditors (CoC) of Ruchi Soya on Tuesday opened the bids submitted by Patanjali and Adani Wilmar, which sells cooking oil under the Fortune brand.

The CoC has decided to conduct an auction under the Swiss challenge method to maximise the asset value of Ruchi Soya. Under the method, Adani will get another chance to make an offer if Patanjali were to match or better its bid.

Speaking to agencies, Patanjali spokesperson SK Tijarawala raised questions over the process, citing reports of the resignation of law firm Cyril Amarchand Mangaldas as advisor to Adani Wilmar.

The law firm is also advising Ruchi Soya's resolution professional.

"We are surprised and have sought details from CoC. We have written a letter on the issue of resignation of Cyril Amarchand Mangaldas," Tijarawala said.

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

Ruchi Soya, which is facing insolvency proceedings, has a total debt of about Rs 120 billion. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star, and Ruchi Gold.

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

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.

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

First Published: Wed, June 13 2018. 18:39 IST
RECOMMENDED FOR YOU