The procedure and guidelines for conducting an online auction for the bidders were finalised at a meeting of the Committee of Creditors (COC) for Reliance Capital on Friday. An escalating auction method will be used for the e-auction, which will start on December 19.
The Cosmea-Piramal consortium’s bid price of Rs 5,300 crore will serve as the starting point for the proposed auction, and in the first round, bidders will need to provide Rs 1,000 crore more than this base price.
The bid price must grow by a minimum of Rs 750 crore in the second round and by a minimum of Rs 500 crore and Rs 250 crore in the third and fourth rounds, respectively. For a resolution under the IBC, this is the first time an e-auction of this size and scope would be held.
This news is written by Ms. Pujari Dharani, Research Assistant, All India Legal Forum.