Days after a consortium led by the Piramal Group decided to pull out of the bidding process for Anil Ambani's debt-laden Reliance Capital, Hinduja Group made tried to raise its own bid. A promoter behind IndusInd Bank, Hinduja reportedly planned to offer Rs 9,500 crore for Reliance Capital, including an upfront cash outgo of Rs 8,800 crore.
Its previous bid on December 21 worth Rs 8,110 crore, and the firm hasn't responded to queries yet. With this it could outbid the biggest bidder so far, which is Ahmedabad-based Torrent group with a Rs 8,640 crore offer for the Non Banking Financial Company.
But reports suggest that Hinduja's plans to change the bid after the auction have been derailed by the challenge mechanism. The re-auction for Reliance Capital is also the first of its kind conducted under Insolvency and Bankruptcy Code.
An National Company Law Tribunal (NCLT) order has set a Januart 31, 2023 deadline for lenders have to complete the resolution process.
Currently Reliance Capital is the third large NBFC after Srei Group NBFC and Dewan Housing Finance Corporation (DHFL), against which RBI initiated bankruptcy proceedings.
The RBI's administrator had invited expressions of interest for Reliance Capital in February 2022.
