Lenders to Reliance Capital Ltd (RCL) are understood to have approved a second round of auction for the Anil Ambani-promoted company as voting closed on Tuesday.

Voting for running a second round of ‘challenge mechanism’ started on Monday after the Torrent group and the Hindujas revised their bids and offered more cash, even after the auction got over.

While the results of the voting were not available, sources said that most of Reliance Capital lenders voted in favour of running a second round to obtain value maximisation. The lenders are likely to raise the reserve price of Rs 9,500 crore against the minimum threshold value of Rs 6,500 crore in the first round that had concluded on December 21, 2022.

The second auction round is also likely to have the bidders having to put at least Rs 8,000 crore as upfront cash. This is expected to give the Torrent group an advantage of Rs 640 crore as the company has already made an all-cash offer of Rs 8,640 crore.

It is learnt that the Piramal-Cosmea combine and Oaktree which did not participate in the first round, will also be eligible to participate in the second auction. Earlier, the bids submitted by the Torrent group and IndusInd International Holdings of the Hinduja group at Rs 8,110 crore was below the liquidation value and fair value fixed by the valuer.