Bid price raised to Rs 6,500 crore by RCap creditors committee

14 Dec 2022 , 01:00 PM

In the latest move by the committee of creditors (CoC) of Reliance Capital, CoC has increased the base price for the e-auction of the company. Rejecting all the earlier bids, the RCap CoC has set a new base price for the auction which is almost Rs 1,500 crore higher than the earlier base price, i.e., Rs 6500 crore.

Earlier, the base price of the e-auction was Rs 5,231 crore, which was the highest bid placed by the Cosmea-Piramal combined offer.

As per various reports, now the auction will take place from Thursday, December 22 instead of December 19. According to the new set of rules, bidders in the first and second rounds will have to increase the bid value by at least Rs 1,000 crore each. This means the first bid has to be a minimum of Rs 7,500 crore and the second Rs 8,500 crore. Further, in the third and fourth rounds, the bid amount has to go up by Rs 500 crore and Rs 250 crore, respectively.

This is the first time in Indian market, that an e-auction of large scale will take place for a debt resolution under the Insolvency and Bankruptcy Code (IBC) of 2016.

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