Adani Wilmar, which sells cooking oil under the Fortune brand, and Baba Ramdev-led Patanjali are in the fray to acquire debt-ridden Ruchi Soya.
Adani has emerged as the highest bidder (H1) with an offer of about Rs 60 billion, while Patanjali's bid was worth around Rs 57 billion.
After Adani Wilmar emerged as H1, Patanjali Ayurved sought clarification from the RP (resolution professional) of Ruchi Soya related to eligibility of Adani Group to participate in the bidding process. It also sought to know the parameters adopted by the RP to declare Adani Wilmar as the highest bidder.
The Haridwar-based firm had questioned the appointment of Cyril Amarchand Mangaldas as the RP's legal advisor as the said law firm was already advising Adani Group.
Patanjali was asked to submit a revised bid by June 16 to match or better the highest offer of Rs 60 billion by Adani Wilmar under the Swiss Challenge system adopted by the RP and the committee of creditors.
However, Patanjali wrote to the RP seeking clarifications instead of submitting a fresh bid.
Patanjali Ayurved already has a tie-up with Ruchi Soya for edible oil refining and packaging and it wants to further expand its cooking oil businesses.
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Ruchi Soya has a total debt of about Rs 120 billion. The company has many manufacturing plants and its leading brands include Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.
In December 2017, Ruchi Soya Industries entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed as the RP.
The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank, under the Insolvency and Bankruptcy Code.