1st round fetches 6% higher than reserve price
The liquidator received total bid of Rs32 cr as against reserve price of Rs30.09 cr in 2-day auction held on May 9-11
image for illustrative purpose
After the unsuccessful auction of the gold jewellery and other assets, owned by the multi billionaire Nirav Modi, on March 25, the liquidator was able to do it successfully on May 9 and May 11. The result of the two-day auction of the seized jewellery of Nirav Modi, which got concluded on May 11, is out.
The liquidator has received total bid amounting to Rs32 crore as against the reserve price of Rs 30 crore, six per cent higher than the reserve price.
On Tuesday last week, the liquidator successfully auctioned the First Lot of jewellery of Firestar Diamond International. The auction was successful with 17 bidders participating. Reserve price in total was Rs 3.09 crore and the liquidator received higher than the reserve price in all the options.
The next auction was held on May 11 where metals in bulk like gold, silver, platinum were auctioned. This auction too received a good number of bidders
The May 9 auction was held for the finished goods and jewellery pieces only. On 11th, the precious metals and lose diamonds were auctioned.
All the inventory was independently certified by Gemmological Institute of India (GII), a certification laboratory promoted by the Gems and Jewellery Promotion Council, for their authenticity, purity, (metals) carat cut, colour quality (for stones). The sole purpose of getting this additional certification was to assure the buyers of the genuineness of the goods and also to protect against large variation in valuation between two valuers so that the stakeholders get the correct price for the goods and value is maximized.
What the liquidator did as a strategy was to break up the inventory into smaller lot size so that more number of people can participate and purchase according to their capabilities.
So, the liquidator had the auction of the first lot of inventory on two different dates.
Talking to Bizz Buzz, the court-appointed liquidator to handle the bankruptcy proceedings, Santanu T Ray from AAA Insolvency, said, “The auction was done over two days and in smaller lot size in order to enable more participants to take part in the process and we are very happy to share that in all, 31 participants had shown interest in the auction of which 20 participants actually put in EMDs and participated in the auction. In all, we received more than 400 EMDs (for various options)”
We are happy to share that against the cumulative reserve price of Rs 30,25,72,119 for 9th and 10th Auction, we received total bids of Rs 32,16,47,119 which is approx. 6 per cent higher than the reserve price, he added.
On March 25, the first lot of movable assets belonging to Nirav Modi’s companies – Firestar Diamond International and Firestar International, was scheduled to be auctioned. This formed part of the several rounds of auctioning lined up to raise the Rs12,000 crore ($1.5 billion) the fugitive diamantaire owes his lenders which include several public sector banks among them.
