US-based technology consulting company Palguntech, a bidder for Future Retail (FRL), has offered Rs 560 crore to acquire the entire stake and assets of the beleaguered firm.Further, the firm is also ready to take over all the cases pending against FRL promoters from the resolution professional. This is, however, subject to discussions with the Committee of Creditors (CoC) and the share the lenders agree to give to Palguntech, the US company said in a letter to the administrator.
In April 2023, Palguntech had submitted proposals under option-I, that included FRL and all its subsidiaries. It had also approached the CoC, seeking to take control of FRL. While it had not put a price to FRL’s assets, the US company had promised to offer the highest price.
Later, Palguntech also asked the CoC to consider its bid, following the rejection of SpaceMantra’s resolution application. This was to avoid liquidation of FRL as there were no other bidders for the entire assets of FRL.Palguntech, which is backed by US-based technology entrepreneurs, was looking to foray into the Indian retail market through the acquisition of FRL’s assets. At present, the company is into technology consulting, servicing marquee clients in the US.
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Last year, FRL’s CoC rejected a bid submitted by SpaceMantra after it failed to get the requisite number of votes in favour through the e-voting process. The e-voting for the process ended on September 30.SpaceMantra, a provider of an online marketplace for the construction and interior industry, had offered about Rs 550 crore through the bidding process, which many lenders believed was a “fair price”. This was close to the fair value of Rs 450 crore arrived at by independent valuers.
SpaceMantra and certain lenders had sought a relook at the bidding process to avoid the liquidation process. Later in February this year, SpaceMantra, the only bidder in the resolution plan for FRL, revised its earlier bid “substantially”.Bank of New York Mellon has the highest voting share of 21.18% in FRL’s CoC, followed by Union Bank of India at 9.17% and Bank of Baroda at 8.95%.
From: financialexpress
Financial News
