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Patanjali gets time till Jun 16 to submit revised bid for Ruchi Soya

Press Trust of India  |  New Delhi 

Ramdev's Patanjali Ayurved, which is in race to acquire bankruptcy-bound Ruchi Soya, has been given time till June 16 to match or better the highest bid of about Rs 6,000 crore offered by Wilmar.

Yesterday, a (CoC) met to open the bids submitted by Wilmar and Patanjali group in the fresh round of auction under the Swiss Challenge method.

in a regulatory filing today confirmed that the CoC declared Wilmar as H1 (highest) bidder and Patanjali stood as H2 (second highest).

"We have been informed by the CoC that as per our bid, we are H2 and they will update us about the bid value of H1. We have to submit the revised and improved bid by June 16," Patanjali S K told PTI.

Billionaire Gautam Adani's group company Adani Wilmar, which sells under Fortune brand, offered about Rs 6,000 crore to emerge as the highest bidder for acquisition of while bid for around Rs 5,700 crore, sources had said yesterday.

However, Patanjali has a right to match the offer under the Swiss challenge method adopted by the lenders. The CoC has decided to conduct Swiss challenge method to maximise the asset value of

Yesterday, had raised question over the neutrality of the process citing of resignation of firm as of Adani Wilmar. The firm is also advising the Ruchi Soya's resolution professional.

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

Sources had said lenders who have to recover about Rs 12,000 crore in outstanding loans from Ruchi Soya, were not happy with the initial bids, wherein Patanjali was the top bidder with an offer of around Rs 4,300 crore followed by Adani at Rs 3,300 crore.

Under the Swiss Challenge method, Adani will get another chance to make an offer if Patanjali were to match or better its offer of about Rs 6,000 crore.

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

Ruchi Soya, which is facing the insolvency proceedings, has a total debt of about Rs 12,000 crore. 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 as interim resolution professional (IRP).

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

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 13 2018. 20:35 IST