Inter-se auction lined up for sale of HNG

7 Sep 2022 , 07:53 AM

According to news reports, lenders for Hindusthan National Glass & Industries (HNG) will organize an inter-se auction among the three bidders to choose the winner.

The companies vying to acquire the listed company with its headquarters in Kolkata are Madhvani Group, based in South Africa, AGI Greenpac, India’s leading packaging products company, and Nirma Chemicals, a manufacturer of detergent soap and cosmetics.

The resolution applicants (RA) were asked by the RP supported by EY to provide an improved strategy. The RP will offer a “basis price” after assessing the amended plans. The following week’s auction would come after this.

The RAs would need to submit bids that were greater than the base price in the first round, and in subsequent rounds, they would need to raise their offers by at least Rs50 crore to stay in the running.

According to the individuals stated above, the component that the RP would consider to determine the base price will be crucial for bids but is not adequately communicated to the applicants. While some lenders claim that the primary consideration will be net present value, others assert that the upfront payment may have more weight when determining the base price.

Nirma, which was promoted by Karsanbhai Patel, provided Rs1,650 crore in cash upfront. According to a report on July 28, AGI Greenpac offered roughly Rs1,800 crore, of which Rs500 crore would be paid upfront, while The Madhvani Group had offered Rs1,500 crore.

The RP has acknowledged Rs3,338 crore in financial creditors’ claims.

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