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The committee of creditors (CoC) of Reliance Capital has set the base price for bidding via the e-auction process at ₹6,500 crore — much above the highest binding bid received, according to sources.
Earlier, the base price was reported to be around ₹5,300 crore, also higher than the highest bid of ₹5,231 crore submitted jointly by Cosmea Financial and Piramal Capital. As per the combined bid, the liability of Piramal Capital will be limited only to Reliance General Insurance.
However, the CoC in its meeting on Tuesday, upped the base price to ₹6,500 crore, sources told businessline, adding that the two-day e-auction process is expected to be held in the fourth week of December. This will be the first time an e-auction process of this scale and magnitude is being undertaken for resolution under the Insolvency and Bankruptcy Code.
In addition to the combined bid by Cosmea Financial and Piramal Capital, three other entities had submitted binding bids under option-I of Reliance Capital’s resolution. These include the Hinduja Group which submitted a bid of ₹5,060 crore, Torrent Investments of ₹4,500 crore and Oaktree Capital which submitted a bid of ₹4,200 crore, as per industry participants.
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