Insolvent Reliance Capital's base bid price increased to Rs 6,500 crore

14 Dec 2022 , 10:27 AM

The Reliance Capital (RCap) committee of creditors (CoC) boosted the base price for the company’s e-auction to Rs6,500 crore, upsetting potential bidders’ calculations.

The base price was increased to Rs6,500 crore during the CoC meeting in order to reflect the high valuation of the company’s two profitable insurance assets.

The offer made by the Cosmea Financial Holding and Piramal consortium was valued at Rs5,231 crore in the preceding proposal.

The first and second round bidders must each boost their bid by at least Rs 1,000 crore in accordance with the new regulations. Accordingly, the first bid must be at least Rs7,500 crore, and the second, at least Rs8,500 crore. The bid sum must then increase by Rs500 crore and Rs250 crore, respectively, in the third and fourth rounds.