June 12: Patanjali Ayurved and Adani Group, the two suitors for the debt-laden Ruchi Soya has submitted the revised bid following the decision of the lenders to hold a fresh round of resolution process. The new bids were invited after the Committee of Creditors pushed for an aggressive bidding to maximize the value of the assets.
According to reports, Patanjali Ayurved has confirmed the submission of the renewed bid for acquiring the bankruptcy-hit Ruchi Soya and all its assets. The company had earlier submitted Rs 4300 crore bid including the infusion of Rs 1800 crore into Soya Group, making it the largest bidder in the previous process. Adani Group, which sells edible oils under Fortune brand, were also involved in the bidding process and had presented a bid of Rs 3300 crore.
The CoC later in its meeting held on May 30 decided to adopt a Swiss Challenge method for the bidding to maximize the value of the assets. Under the process, the lowest bidder would be given the chance to match the bid of that from the highest bidder. If the bid gets matched, the highest bidder would be given the option to improve its bid. The Swiss Challenge bid for Soya Group is being conducted by an Executive Committee comprising of representatives from IDBI, SBI, Standard Chartered and Corporation Bank.
Ruchi Soya Industries Ltd entered into Corporate Insolvency Resolution Process (CIRP) during December 2017, following which Shailendra Ajmera was appointed as interim resolution professional. The company has a total debt of around Rs 12,000 crore.
Top bidder Patanjali had been eyeing on expanding its cooking oil business by acquiring Ruchi Soya, with which the company already has tied-up for edible oil refining and packaging. Companies like Emami Agrotech, Wilmar, and Godrej Agrovet had also previously shown interest in acquiring Ruchi Soya apart from Patanjali and Adani Group.