In the second step, a request for proposal (RFP) will be sent through a detailed Expression of Interest (EOI) together with the proof of availability of funds in the amount of, at least, Rs 1,500 crore (USD 290 million based on exchange rate of Rs 51.635 to USD 1) by 5:00 pm, Indian Standard Time on Friday, March 20, 2009.
In the third step, based on the submitted EOIs, eligible bidders will be short-listed and given access to certain business, financial and legal diligence materials relating to the company, provided they have executed a non-disclosure and non-solicitation agreement, a stand-still agreement and a ‘no-claims’ undertaking. After completion of the due diligence process and execution of the pre-financial bid documents, all short-listed bidders will be asked to submit their financial bids and an executed copy of the share subscription agreement.
Further, based on an evaluation of the bids, the company will select the successful bidder, after which the successful bidder will have four days to deposit, with the company, the entire subscription amount and the requisite funds for the public offer in an escrow account.
During the bid process, if the top two final bids are within 10% of each other a rebid will be allowed. Also, the highest bidder may not necessarily win as he must qualify on other criteria as well.
Source : CNBC-TV18