Lenders to Ruchi Soya Industries Ltd have approved a revised offer by Patanjali Ayurved Ltd, the consumer goods company backed by yoga guru Baba Ramdev, to take over the debt-laden edible oils maker.
The Committee of Creditors of Ruchi Soya gave their approval on Tuesday, people familiar with the development told VCCircle.
The revised bid was approved with a 96% majority vote in favour. The haircut on this transaction stands at around 53% for the lenders, the person cited above said.
The development was first reported by the Press Trust of India which cited persons it did not identify. However, Patanjali spokesperson SK Tijarawala confirmed the development to the news agency. "Voting has gone in our favour," the spokesperson said.
The revised proposal of Rs 4,350 crore in cash upfront was nearly Rs 200 crore more than it had offered earlier. It pipped Adani Wilmar Ltd’s bid of Rs 4,100 crore.
Ruchi Soya has total outstanding dues of about Rs 12,000 crore, with around Rs 9,345 crore owed to its financial creditors led by State Bank of India.
The offer excludes a capital infusion of Rs 1,700 crore, the PTI report noted.
The matter has now been posted for further hearing on May 7 for approval by the National Company Law Tribunal (NCLT).
Adani Wilmar was the highest bidder in August last year after a long-drawn battle with Patanjali. Adani Wilmar had later opted out, blaming the delay in the process after Patanjali had moved the NCLT against the bid.
In December 2017, Ruchi Soya was referred to the National Company Law Tribunal following petitions from creditors Standard Chartered Bank and DBS Bank. The NCLT appointed Shailendra Ajmera as the resolution professional under the Insolvency and Bankruptcy Code.
Ruchi Soya has several manufacturing plants and it sells food products and edible oils under brands including Nutrela, Mahakosh, Sunrich, Ruchi Star and Ruchi Gold.