Baba Ramdev-promoted Patanjali Ayurved, which is in the race with Adani group to acquire bankruptcy-hit Ruchi Soya, is likely to submit a revised bid tomorrow as lenders of the edible oil firm have decided to hold a fresh round of resolution process between the two contenders to maximise asset value.
According to sources, Patanjali group has submitted its undertaking of having no objection to the 'Swiss Challenge' process adopted by the lenders.
When asked about the development in the bidding process, Patanjali spokesperson S K Tijarawala said: "Whatever process is being adopted by the CoC, we will follow it."
Under Swiss Challenge system, which is now used by various government wings for tenders for railways, road and housing etc, lower bidders are given chance to match the highest bidder and if matched then the highest bidder is asked to improve its bid.
Patanjali has emerged as the highest bidder with an offer of around Rs 43 billion 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 33 billion.
An Executive Committee comprising of representatives from IDBI, SBI, Stanchart and Corporation Bank would 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 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 Ltd entered into the Corporate Insolvency Resolution Process (CIRP) and Shailendra Ajmera was appointed to act 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.