CoC in its meeting held on May 30 had set the stage for an aggressive bidding between the two suitors for Ruchi Soya to maximise the value of the assets, sources said, adding that the CoC in consultation with the independent evaluator has decided to adopt a Swiss challenge method.
Under the Swiss challenge system, which is now used by various government wings for tenders, lower bidders are given chance to match the highest bidder and if matched then the highest bidder is asked to improve its bid.
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Earlier, Patanjali had emerged as the highest bidder with an offer of around Rs 4,300 crore and has a commitment of Rs 1,800 crore capital infusion into the company, sources said, adding that Adani Wilmar, which sells edible oils under Fortune brand, has made a bid of around Rs 3,300 crore.
An Executive Committee comprising of representatives from IDBI, SBI, Stanchart and Corporation Bank will conduct the Swiss challenge and conclude the process by mid-June.
Apart from Patanjali and Adani, companies that had shown interest in acquiring Ruchi Soya were Wilmar, Emami Agrotech and Godrej Agrovet.
Patanjali Ayurveda already has a tie-up with the Indore-based Ruchi Soya for edible oil refining and packaging and it wants to further expand into cooking oil business.
Ruchi Soya, facing the insolvency proceedings, has a total debt of about Rs 12,000 crore. 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 Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed as interim resolution Professional (IRP).
The appointment was made by the National Company Law Tribunal (NCLT) on the application of the creditors Standard Chartered Bank and DBS Bank Ltd, under the Insolvency and Bankruptcy Code.