June 18: Adani Wilmar has seemingly emerged as winners in the race for acquiring debt-laden Ruchi Soya as Patanjali has decided not to submit an improved bid to overcome that of Adani. According to person close to the matter, Patanjali Ayurved hasn’t submitted a bid until Saturday, which was the last day for the Baba Ramdev-led firm to submit its bid.
As reported in The Economic Times, Patanjali hasn’t provided any reason for not submitting an improved bid. As a result, Adani Wilmar will be declared as the highest bidders after the lenders’ meeting scheduled next week. This will be followed by the process of negotiations for finalizing the contours of the deal.
The Committee of Creditors had earlier decided to conduct the bidding in a Swiss challenge method in which the lowest bidder among the two was allowed to renew the bid to outrun the top bidder. Adani had submitted an offer of Rs 5474 crore with Rs 4300 among that being payment to the lenders. Despite a higher infusion of funds of Rs5765 crore in its offer, Adani’s bid was considered to be higher. This was because of the lower value of payment to lenders (Rs 4065 crore).
Patanjali had time till Saturday to present its improved bid, and in the case of the company presenting its bid, Adani Wilmar would have been given time till Monday to present its respective improved bid. However, with that not shaping up, Adani Wilmar can now head for the process of negotiations.
It also needs to be seen as of whether Patanjali would be moving court over breach of bankruptcy rules. The company had earlier deemed the dual appointment of law firm Cyrial Amarchand Mangaldas as adviser to the resolution professional of Ruchi Soya and Adani Wilmar. CAM later resigned as the adviser to Adani Wimar though.