Competition pays — but only at three bidders
In one Nagpur case a rival bid lifted the price 16%. Across 1,277 resolutions, competition helps less than that story suggests — and most of the gain comes at three bidders, not two.
In the CIRP of Shubhada Tool Industries (Nagpur; NCLT Mumbai), two applicants stayed to the end: Cian Agro Industries & Infrastructure Limited, a listed company, and Industrial Asset Transaction Services Private Ltd. The plan-approval order records offers moving from ₹8.20 crore through ₹8.90 crore to the ₹9.50 crore range before Cian’s final plan carried the CoC with a 100% vote. That is roughly a 16% lift with no change in the asset, only in the number of hands raised. A ₹97.5 lakh participation deposit kept both bidders in the rounds.
Does that hold across the record? We counted, for every approved plan whose order was read in full, how many applicants actually put a plan in.
| Plans submitted | Resolutions | Median recovery vs liquidation value | Median recovery vs admitted claims |
|---|---|---|---|
| 1 | 577 | 118.6% | 22.0% |
| 2 | 373 | 119.8% | 20.8% |
| 3 or more | 327 | 123.7% | 24.2% |
The direction is the one the Shubhada file suggests, but the size is smaller. A second plan adds just over one point of liquidation value at the median, and nothing against claims. Three or more plans is where recovery moves: about five points more against liquidation value and two more against claims than a single-plan process.
The read-through still cuts both ways. For a creditor or resolution professional, keeping a third applicant alive is worth more than keeping a second. For a buyer, 45% of approved resolutions had only one plan on the table — the uncontested deal is common, and the earlier you enter the funnel, the more often you are that one plan.