Baba Ramdev-promoted Patanjali Ayurved, which is in the race with Adani group to acquire bankruptcy-hit Ruchi Soya, is likely to submit a revised bid tomorrow as lenders of the edible oil firm have decided to hold a fresh round of resolution process between the two contenders to maximise asset value.
The Committee of Creditors (CoC) in its last meeting held on May 30 had set the stage for an aggressive bidding between the two suitors for Ruchi Soya to maximise the value of the assets, sources said, adding that the COC in consultation with the independent evaluator has decided to adopt a Swiss challenge.
According to sources, Patanjali group has submitted its undertaking of having no objection to the 'Swiss Challenge' process adopted by the lenders.
When asked about the development in the bidding process, Patanjali spokesperson S K Tijarawala said: "Whatever process is being adopted by the CoC, we will follow it."
Under Swiss Challenge system, which is now used by various government wings for tenders for railways, road and housing etc, lower bidders are given chance to match the highest bidder and if matched then the highest bidder is asked to improve its bid.
Patanjali has emerged as the highest bidder with an offer of around Rs 43 billion and has a commitment of Rs 1,800 crore capital infusion into the company, sources said, adding that Adani Wilmar, which sells edible oils under Fortune brand, has made a bid of around Rs 33 billion.
Ruchi Soya, facing the 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.