Torrent Investment has won the e-auction for resolution of Reliance Capital, submitting the highest bid of ₹8,640 crore after four rounds, sources told businessline.

It outbid the only other participant, IndusInd International Holdings — part of the Hinduja Group — which submitted a bid of ₹8,110 crore.

The other two entities to submit binding bids, Cosmea Financial and Piramal Capital combined, and US-based Oaktree Capital, did not participate in the e-auction, sources said.

The base price for the e-auction was set at ₹6,500 crore, ₹1,500 crore above the highest net present value of ₹5,000 crore as per Cosmea-Piramal’s combined bid.

Torrent Investment is a part of Ahmedabad-based Torrent Group, which primarily operates in the healthcare and power sectors through its flagship company Torrent Pharma and sister company Torrent Power.

What’s next?

The company will now be required to submit its final resolution plan, including the upfront cash component and net present value, following which the CoC (committee of creditors) of Reliance Capital will review and analyse the bid before putting it to vote.

The CoC will next meet for discussions on Friday, industry sources said.

Under the final bidding process, the highest bid of ₹5,231 crore was submitted as a joint bid by Cosmea Financial and Piramal Capital, wherein the liability of Piramal Capital was limited only to Reliance General Insurance.

However, the CoC decided to go ahead with the e-auction, at the behest of the two largest lenders — LIC and EPFO, that collectively hold 35 per cent of the voting rights — as they believed that the bids valued RCap much lower than the liquidation value of ₹12,000 to 13,000 crore as estimated by independent agencies.

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