- The approval is subject to competent court resolution.
The National Company Law Tribunal (NCLT) has now finally cleared the Rs 4,350-crore bid by yoga-exponent Ramdev-run Patanjali Ayurved after a prolonged fight to take over edible oil player Ruchi Soya, that owes Rs 9,345 crore to lenders and Rs 2,800 crore to other lenders. The NCLT approval arises after the petition submitted by Standard Chartered Bank and Singaporean lender DBS, both challenging Patanjali’s low offer and the resulting reduced payout, have been rejected.
However, the tribunal made it clear that that the approval is subject to competent court resolution bridging the information gap on the precise source of funds worth Rs 600 crore (which is part of the bid amount) before the next date of hearing on 1st of August.
Ruchi Soya, that owes over Rs 9,345 crore to financial creditors led by State Bank of India, that has an exposure of Rs 1,800 crore, followed by Central Bank at Rs 816 crore, Punjab National Bank at Rs 743 crore and StanChart at Rs 608 crore and DBS at Rs 243 crore. Thus the resolution has come at over Rs 60 percent haircut to the lenders. In addition to this, the RP has admitted claims worth Rs 2,716.61 crore from operational creditors. The order does not say how much they will get from the proceeds, though.
The tribunal did also ask the RP to furnish the actual cost of the entire resolution process.
The RP is directed to submit detailed breakup of the entire resolution cost before the next date of listing on August 1,” the tribunal said in a 43-page order.
Reacting to the order, Patanjali MD Acharya Balkrishna said this is quite a positive development which will help them expand their Swadeshi movement.
The NCLT concluded the hearing on the case on May 10 and reserved its order on the Rs 4,350-crore offer by Patanjali to take over the dying edible oil firm. Reserving the order it had sought clarity on Rs 600-crore of part-funding committed as internal accruals for the acquisition.
In December 2017, NCLT did admit the bankruptcy petition filed by DBS and Standard Chartered Bank against Ruchi Soya and had appointed Shailendra Ajmera as the RP, who had received over two dozen expressions of interest initially.
For Patanjali, which was clocking multi-fold growth in recent years, saw a marginal growth in FY18 hit by GST, finishing at around Rs 12,000 crore, the deal will help boost both bottom lines and topline. During FY17 it had a whopping turnover of Rs 10,561 crore, registering 111 percent of massive growth. The Competition Commission had recently cleared the deal on 6th of March, 2o19.