Torrent Investments Private Limited has emerged as the highest bidder for debt-laden Reliance Capital Limited (NSEI:RELCAPITAL) in the first phase of the auction that was conducted on December 21, 2022, according to two officials familiar with the matter. Torrent Group bid INR 86.40 billion for acquiring the Anil Ambani Group company. The only other company left in the race now, Hinduja Group Limited, offered INR 81.10 billion.

Oaktree Capital Group, LLC and Cosmea-Piramal consortium decided to withdraw last-minute from the race, the officials added. "The committee of creditors will need to study the final details of the resolution plan including the cash component being offered by Torrent and Hinduja before finalizing the winning bid," said one of the officials. The initial bidding round saw Torrent offer INR 45.00 billion and Hinduja offer INR 30.50 billion.

Cosmea Financial Holdings Private Limited pulled out of the resolution process on December 20, 2022, citing higher-than-expected base bid of INR 65.00 billion. Cosmea's move made it difficult for Piramal Enterprises to participate in the auction, since it was bidding only for one Reliance Capital entity. E-auction rules allow only bidders who bid for the entire company to participate.

The Cosmea-Piramal consortium had bid for the company and its subsidiaries with Piramal group's liability limited to Reliance General Insurance Company Limited. In a letter to the administrator on December 19, 2022, Cosmea explained that the revised bid was INR 15.00 billion higher than the net present value offered by them. According to the new rules, in the first and second rounds, bidders will have to increase the bid value by a minimum of INR 10.00 billion each.

In the third and fourth rounds, the amount has to go up by INR 5.00 billion and INR 2.50 billion, respectively. This would mean that the required bids should be INR 75.00 billion, INR 85.00 billion, INR 90.00 billion, and INR 92.50 billion, respectively. Last week, the committee of creditors had called for the e-auction for Reliance Capital after they found that the initial bids were below the liquidation value.

The lenders had asked the bidders to revise the bid price else the companies will go in for liquidation. The bidders and CoC agreed to hold the auction, which took place on December 21, 2022.