Edible oil firm Ruchi Soya was one of the 28 companies that were identified for insolvency process under the IBC law. The company, which has Rs 120 billion as outstanding debt, was declared a wilful defaulter by the IDBI Bank. The company said that it would challenge the tag. Nearly six months after being identified, other companies might be at different stages of insolvency, Ruchi Soya has already got two big names in a close fight with each other, in which Gautam Adani’s group company emerged as the highest bidder piping Ramdev’s Patanjali Ayurved.
Adani Group offered about Rs 60 billion to emerge as the highest bidder while Patanjali Ayurved missed it with a little margin. Patanjali Ayurved, the only other qualified player in the race, has bid for around Rs 57 billion, PTI quoting unnamed sources reported. But the race has not finished yet. Patanjali will have a right to match the offer under an auction being done under Swiss challenge method.
The CoC has decided to conduct Swiss challenge method to maximise the asset value of Ruchi Soya. The lenders were not happy with the bids earlier submitted as well, in which Patanjali Ayurved emerged as the highest bidder with 43 billion followed by Adani at Rs 33 billion. Under the Swiss Challenge method, Adani will get another chance to make an offer if Patanjali were to match or better its offer of about Rs 60 billion.
Other companies that also showed interest in acquiring Ruchi Soya were Godrej Agrovet and Emami Agrotech. Patanjali Ayurved looks to become a major player in edible oil segment, particularly soybean oil by acquiring Ruchi Soya. Adani Group’s Adani Wilmar, which sells cooking oil under Fortune brand, also sees Ruchi Soya as a good asset. In December 2017, Ruchi Soya Industries Ltd entered into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).