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Ruchi Soya second-round bidding on Jun 11; Patanjali to submit revised bid

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

Press Trust of India  |  New Delhi 

Patanjali

Patanjali Ayurved, which is in the race with to acquire bankruptcy-hit Ruchi Soya, is likely to submit a revised bid tomorrow as lenders of the firm have decided to hold a fresh round of resolution process between the two contenders to maximise asset value.

The (CoC) in its last 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 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 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.
 

An comprising of representatives from IDBI, SBI, Stanchart and would conduct the Swiss Challenge and conclude the process by

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

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

Ruchi Soya, facing the insolvency proceedings, has a total debt of about Rs 120 billion. The company has many and its leading brands include Nutrela, Mahakosh, Sunrich, and

In December 2017, entered into the Corporate Insolvency Resolution Process (CIRP) and was appointed to act as interim resolution Professional (IRP).

The appointment was made by the (NCLT) on the application of the creditors and DBS Bank Ltd, under the Insolvency and Bankruptcy Code.

First Published: Sun, June 10 2018. 23:58 IST
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