As much as Rs 3,700 crore of the acquisition cost was supposed to have been funded by bank loans with Patanjali infusing Rs 600 crore from its own internal accruals. Bankers are also wary of funding the home-grown consumer goods company after rating downgrades by rating agencies Care and ICRA in October.
MUMBAI: Pantajali Ayurved’s attempt to buy out edible oil maker Ruchi Soya under the insolvency and bankruptcy code (IBC) for Rs 4,350 crore has ran into a road block as the State Bank of India (SBI) has refused to fund the transaction on its own and demanded that other lenders who also benefit from the deal chip in, too.
Wilmar, a joint venture between Adani Group and Singapore’s Wilmar International, had been voted as the winning bidder in 2018 with an offer of Rs 5,474 crore, higher than Patanjali’s Rs 4,350 crore. However, the company withdrew from the race citing delays which it said had caused “deterioration of the asset” and is “detrimental to the interest of the stakeholders”.