Debt-ridden Ruchi Soya Industries Ltd (RSIL), which is currently undergoing bankruptcy proceedings, has received a whopping 26 applications from Indian and foreign conglomerates to acquire a 51 per cent stake in the company. The bidders, according to sources, are quoting anywhere between ₹8,000 crore and ₹10,000 crore for the majority stake in India’s largest edible oil-maker.
This could be perhaps the largest number of bidders for a company that is undergoing the process of debt restructuring under the National Company Law Tribunal (NCLT). RSIL was expecting to complete the deal by June, one of the sources said.
A number of Indian and multinational companies have shown interest in the beleaguered firm. They include firms such as ITC, Patanjali Ayurved, Emami Group, Sakuma Exports, Phoenix ARC, AION Capital Partners, 3F Oil Palm Agrotech and Singapore-based Musim Mas.
Global investment firm Kohlberg Kravis Roberts (KKR), Indian subsidiary of US-based Cargill Corp, Singaporean palm oil company Golden-Agri Resources and Malaysia’s Sime Darby Bhd are in the race.
While a mail sent to RSIL went unanswered on Thursday, all the companies in the list could not be immediately contacted.
Import duty hike
According to sources, the sheer number of investors interested in the company has led to an increase in optimism among bankers, who now hope of recovering their entire loans. The bidders are bullish on the sector, especially after the government raised import duties on certain vegetable oils to check their shipments into the country.
The government in its Budget announcement on February 1, hiked the import duties to 30-35 per cent from the earlier 20 per cent.
Ruchi Soya, the largest player in oil seed extraction in the country with a 3.72-mtpa capacity, had a total debt of about ₹12,000 crore as of December 31, 2017.
Its brand portfolio includes Nutrela, Mahakosh, Sunrich, Ruchi Gold and Ruchi Star, while the company is also the largest player in the cooking oil and soya foods category in India.
In December 2017, NCLT’s Mumbai bench admitted Ruchi Soya’s Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, following petitions by Standard Chartered Bank and DBS Bank.
Last year, Ruchi Soya announced a 51 per cent stake sale to private equity major Devonshire Capital for about ₹4,000 crore. However, with the NCLT admitting the case the Devonshire deal became “null and void”.