According to sources, Mumbai-based NBFC Cosmea Financial Holdings withdrew from the competition to purchase the heavily indebted Reliance Capital Ltd (RCL) through an insolvency managed bid procedure. Sources claim Piramal Group is still interested in the auction process notwithstanding Cosmea and Piramal Group’s attempt to purchase the former company of the Anil Ambani Group.

Sources claim that the group made the highest binding offer for the assets of Reliance Capital.The highest bidder’s withdrawal on the night of the auction has shocked the lenders because the committee of creditors (CoC) approved the planned e-auction for RCL to be held on December 21.

The basic bid in the auction itself now requires a large increase of approximately Rs 1,500 crore above and above the highest bid in order to start participating in the process, according to sources, which is why the pull out occurred.

The second-highest proposal was made by Hinduja, who offered Rs 5,060 crore along with a Rs 4,100 crore upfront payment. The bid from Hinduja has an NPV of Rs 4,800 crores. Quotes from Torrent and Oaktree are 4,500 crore and 4,200 crore, respectively.

They have each proposed an advance payment of Rs. 1,100 crore and Rs. 1,000 crore. The NPV of Oaktree’s resolution plan was Rs 2600 crore, whereas that of Torrent was Rs 4200 crore.

The third sizable NBFC that the central bank has filed for bankruptcy protection under the Insolvency and Bankruptcy Code involves Reliance Capital (IBC).

The other two were Dewan Housing Finance Corporation and Srei Group NBFC (DHFL). At the National Company Law Tribunal’s Mumbai bench, the RBI then submitted a plea for the initiation of CIRP against the company (NCLT). The administrator designated by the RBI called for expressions of interest in the sale of Reliance Capital in February of this year.


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