Mumbai-based NBFC Cosmea Financial Holdings out of debt-ridden takeover race Reliance Capital Limited ,rcl) under a bankruptcy run the bidding process, sources said. combined with cosmea Piramal Group Anil Ambani had made a bid to acquire the group’s erstwhile company, but sources said Piramal was still interested in the auction process.

According to sources, the consortium had made the most binding bid for this Reliance Capital properties.

The planned e-auction for RCLs approved by the Committee of Creditors (CoC) is scheduled to take place on December 21, and the exit of the highest bidder on the eve of the auction has dealt a major blow to the lenders. ,

The reason for the exit, according to sources, is believed to be a substantial change in the bidding process framework, which requires a significant raise of around Rs 1,500 crore in addition to the highest bid to trigger the base bid in the auction. participate in the process.

The CoC has fixed the floor value for the auction at Rs 6,500 crore, which is Rs 1,500 crore more than the net present value.n p v) Cosmea-Piramal Solution Plan.

Besides this, sources said, the raise in the auction process for the second and third rounds has also been set at a very high level of Rs 1,000 crore. With the exit, now only three players are left in the race – Hinduja, Torrent and Oak tree,

HindujaThe bid of Rs 5,060 crore, which includes an upfront payment of Rs 4,100 crore, was the second highest bid. The NPV of Hinduja’s offer was Rs 4,800 crore. Torrent and Oaktree have made bids of Rs 4,500 crore and Rs 4,200 crore, respectively. They have offered upfront payment of Rs 1,100 crore and Rs 1,000 crore, respectively. The NPV of Torrent’s resolution plan was Rs 4200 crore and that of Oaktree was Rs 2600 crore.

reserve Bank of India The Reserve Bank of India (RBI) had superseded the board of RCL on November 29 last year in view of payment defaults and serious governance issues. reserve Bank of India Nageswara Rao Y has been appointed as the administrator in connection with the Corporate Insolvency Resolution Process (CIRP) of the firm.

Reliance Capital is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).

the other two were shrei group NBFC and Dewan Housing Finance Corporation (DHFL). The RBI subsequently filed an application in the Mumbai bench of the National Company Law Tribunal (NCLT) for initiation of CIRP against the company. In February this year, the RBI-appointed administrator had sought expressions of interest for the sale of Reliance Capital.