Adani Wilmar, a joint venture between the Adani Group and Singapore’s Wilmar International, has beaten rival bidder Patanjali to place a higher bid of close to rs 6,000 crore for the bankrupt Ruchi Soya, bankers said.
Yoga guru Baba Ramdev’s Patanjali has offered to pay close to Rs 4,000 crore as upfront payment and another Rs 1,700 crore as capital infusion.
Persons close to the development said a Swiss challenge auction will be conducted, where Patanjali will be given the option to match Adani Wilmar’s offer. Also, Adani Wilmar will be given the first right of refusal after Patanjali submits its revised bid.
Adani Wilmar’s bid includes around Rs 4,300 crore as an upfront payment and another Rs 1,700 crore as capital infusion into the company. Adani Wilmar owns the popular cooking oil and basmati rice brand Fortune.
The revised bids were opened on Tuesday. The two bidders have been locked in a fierce contest to get control of Ruchi Soya, which is one of the largest edible oil producer in India and runs 19 plants across the country.
Claims worth Rs 9,119 crore from financial creditors of Ruchi Soya have been admitted by the National Company Law Tribunal (NCLT). Last week, the Mumbai bench of the NCLT granted an additional 90 days to Ruchi Soya to complete the corporate insolvency resolution process under the Insolvency and Bankruptcy Code.
The initial 180-day period will end on June 18. The company was admitted by the NCLT for insolvency proceeding in last December, after Standard Chartered Bank and DBS Bank filed an insolvency petition against Ruchi Soya. It is one of the 28 companies mentioned in the Reserve Bank of India’s second list of corporate defaulters.