Competition pays: what a second bidder did to plan value
Two applicants stayed to the end of one Nagpur CIRP. The order records exactly what that rivalry was worth to creditors.
In the CIRP of Shubhada Tool Industries (Nagpur; NCLT Mumbai), two prospective resolution applicants stayed in the process to the end: Cian Agro Industries & Infrastructure Limited, a listed company, and Industrial Asset Transaction Services Private Ltd (IATSPT). The plan-approval order records what that rivalry did to price: offers moved from ₹8.20 crore through ₹8.90 crore to the ₹9.50 crore range across successive rounds before Cian's final plan of 23 Aug 2025 carried the Committee of Creditors with a 100% vote.
That is roughly a 16% improvement in creditor recovery generated by competitive tension alone — no change in the asset, only in the number of hands raised. The process design helped: a plan-participation deposit of ₹97.5 lakh kept both bidders committed through the rounds.
The read-through cuts both ways. For a creditor or resolution professional, keeping a second applicant alive is worth real money. For a buyer, the corollary is uncomfortable but useful: an uncontested deal is a cheaper deal — and the earlier you enter the funnel (at admission, before the EoI crowd forms), the more often you are the only serious hand in the room.