RCap auction postponed to April 11 even as Torrent pursues litigation

Lenders fix Rs 9,000 cr as floor price; Torrent may participate, but it will be subject to SC decision on its petition, which will be heard in August

Lenders have postponed  the second auction to sell bankrupt Reliance Capital's assets by a week to April 11, even as the Torrent group, the highest bidder in the first round, pursues litigation in the Supreme Court.

Lenders are expecting the Hinduja group and Torrent to participate in the second auction and maximise the value of the assets. American financial services major, Oakteee may also join the race, said a source.

Lenders have decided to give the bidders additional time to prepare for the bid as the competition is likely to go up in the next round.

The Committee of Creditors (COC) has also assured the bidders it will look at their request not to consider any offers outside the auction process once the results are out. This will ensure value maximisation for the lenders and transparency in the bidding process.

The highest bidder in net present value terms will be declared post auction to bring finality to the resolution process.

The lenders have kept Rs 9,000 crore as the floor price for the second auction, which can be raised by Rs 500 crore in the second round and by Rs 250 crore in the next. All bidders will have to give Rs 8,000 crore as upfront cash with their offers.