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With the Baba Ramdev-led Patanjali Ayurved and Adani Group submitting similar bids to acquire the debt-laden Ruchi Soya, the Committee of Creditors is looking at the possibility of conducting a ‘Swiss Challenge’ (a form of open bidding) to pick the better resolution plan. Other options, including allowing the lenders to take a stake in the company, are also being probed.
The final call will be taken by the Committee of Creditors, which is are expected to meet soon. The entire process of finalising a bidder, with or without the Swiss Challenge, has to be finalised within the next 7-10 days, sources close to the development said.
“At the Committee of Creditors (CoC) meeting on Tuesday, Adani Group and Patanjali presented their bids and resolution plans. The conditions of the bid and value were much on par, while the bidding also hovered around similar levels,” a source said, without disclosing the figure. \
The bankruptcy proceedings of Ruchi Soya have to be completed by June 21.
“The CoC is keen for value maximisation and to minimise the haircut of secured lenders. The Insolvency Resolution Professional (IRP) has also asked Adani, which had earlier submitted a conditional bid that offered a certain amount in cash and the remainder in equity, to submit a final figure,” another source said.
EY is the IRP in the Ruchi Soya insolvency case, while BDO India is the advisor to the CoC.
According to some media reports, Patanjali had initially placed a bid of ₹2,500 crore, but later raised it to ₹4,000 crore. However, sources told BusinessLine that these reports were not correct.
Patanjali presentation
“The CoC had called us to make a presentation two days ago for a resolution. It is now the prerogative of the COC and it is up to them to consider us,” said Patanjali spokesperson SK Tijarawala.
Patanjali CEO Acharya Balkrishna made the presentation before the CoC. The company already has a tie-up with Ruchi Soya for edible oil refining and packaging.
Both the companies have readied a war chest to fund the deal, if selected. As of December 31, 2017, Ruchi Soya’s debt stood at about ₹12,000 crore.
Ruchi Soya is the largest edible oilseed extraction and refining company in India, with a 3.72 mtpa capacity. It is also the largest player in the cooking oil and soya foods category in the country. The company’s brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
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