Kotak Investment Advisors Ltd. has backed out of the race to acquire real estate-focused nonbanking finance company Altico Capital India Ltd., Mint reported Jan. 7, citing people familiar with the matter.

The company halted its work to place a binding bid on the troubled nonbank lender by the Jan. 15 deadline after receiving adverse feedback from creditors, the sources said.

Kotak Investment Advisors' indicative offer hinged on a purchase of either part or all of Altico's loan portfolio, one of the sources said. A low cash infusion and a high fee structure caused the pushback, a second source added.

Cerberus Capital Management LP and SSG Capital Management Ltd. are now competing with an Altico shareholder-sponsored group to take over the bank after Apollo Global Management Inc. and Värde Partners Inc. reportedly pulled out of the race.

A spokesman for Kotak Investment Advisors did not respond to a request for comment, while an Altico Capital India spokesman declined to comment on the matter, the publication reported.