Adani Wilmar on Tuesday offered to pay Rs 6,000 crore, surpassing Baba Ramdev's Patanjali in the race of acquiring bankruptcy-hit Ruchi Soya. Before Adani's revised offer, Patanjali Ayurved was the highest bidder with an offer of around Rs 5,700 crore. While billionaire Gautam Adani's firm has emerged the highest bidder, Patanjali still has the right to match the Adani Wilmar's offer as the auction is being carried out under the Swiss challenge method.
The Swiss challenge method refers to a system where any person with suitable credentials can submit a development proposal to the government for a public project. The proposal will be then put online and a second party can give suggestions to improve and challenge that proposal.
The Committee of Creditors of Ruchi Soya on Tuesday opened the bids submitted by the Patanjali group and Adani Wilmar. The Patanjali spokesperson questioned the neutrality of the process citing media reports on the resignation of law firm Cyril Amarchand Mangaldas as advisor of Adani Wilmar. The law firm is also advising the Ruchi Soya's resolution professional.
Patanjali spokesperson S K Tijarawala expressed his surprise over the details from CoC, and wrote a letter on the issue of resignation of Cyril Amarchand Mangaldas.
Earlier, it was reported that the creditors committee was not happy with the initial bids where Patanjali was the top bidder with an offer of around Rs 4,300 crore followed by Adani at Rs 3,300 crore. Ruchi Soya owes around Rs 12,000 crore to a consortium of 16 lenders and was referred to bankruptcy court last year as part of the 28 accounts referred to by the Reserve Bank of India.
Recently, a meeting of committee of creditors was held where both Patanjali and Adani Wilmar gave their presentations about their resolution offers and strategies to run the debt-stressed company.
Apart from Patanjali and Adani Group, there were six to seven bidders who had shown their interest in buying Ruchi Soya. Some of the bidders were ITC, Godrej Agrovet and Emami.
Ruchi Soya was admitted for the insolvency resolution process after two financial creditors-- Standard Chartered Bank and DBS Bank -- had moved the NCLT on December 15, 2017. The Indore-based firm has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold. Patanjali already has a tie-up with Ruchi Soya for edible oil refining and packaging.
Follwing the report, the Ruchi Soya stock today jumped in early trade. At 10:57 am, the stock was trading 4.94 per cent higher at 12.74 level, its intra day high on the BSE. The stock opened at 12.25 level today against previous close of 12.14 level. Its market capitalisation rose to Rs 425.64 crore on BSE.