The Ruchi Soya stock rose in early trade today amid reports that 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 today. Lenders of the edible oil firm have decided to hold a fresh round of resolution process between the two contenders to maximise asset value.
The stock rose as much as 4.94% to hit an intra day high of 13.38 in trade today. The stock has been losing for the last five days and has fallen 18.67% during the period.
At 1:16 pm, the stock fell 0.38% to 12.70 level on the BSE.
The stock is down 42.70% during the last one year and has fallen 32.37% since the beginning of this year.
The Committee of Creditors (CoC) in its last 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.
Earlier, Patanjali emerged as the highest bidder with an offer of around Rs 4,300 crore and had 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.
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 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.