Torrent Group outbid others for acquisition of RCap via Rs 8,640 crore offer to lenders

22 Dec 2022 , 10:06 AM

The Ahmedabad-based Torrent group has excelled in the race to acquire Reliance Capital, offering Rs 8,640 crore in an auction held on Wednesday.

The Torrent group’s promoter entities made the offer. According to banking sources, the Hinduja group entered the auction with an offer of Rs 8,150 crore but was outbid by Torrent. The race was skipped by Cosmea-Piramal and Oaktree.

This would aid Torrent’s entry into financial services by acquiring a 100% stake in Reliance General Insurance and a 51% stake in Reliance Nippon Life Insurance, among other assets.

Torrent Pharmaceutical is the flagship company of the Torrent Group, one of India’s leading pharmaceutical companies.

Torrent’s offer is lower than Reliance Capital’s liquidation value but higher than Cosmea-binding Piramal’s offer of Rs 5,231 crore. The lenders will now meet to plan the handover of the company to Torrent and to evaluate bids based on an upfront cash offer and net present value.

Reliance Capital was sent to debt resolution under the Insolvency and Bankruptcy Code, 2016, in November last year after defaulting on bank dues worth Rs 24,000 crore.

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