Reliance Capital will get 10 extra bids for subsidiaries

Reliance Capital Ltd (RCL), a part of the debt-ridden Anil Ambani-promoted Reliance Group, has obtained 10 extra bids, together with from SBI Life, for its subsidiaries, sources mentioned.

Earlier this month, the Committee of Debenture Holders had prolonged the final date for submission of expression of curiosity (EoI) to December 17, 2020.

Following this, 10 new bids have are available for Reliance Capital’s property, taking the full variety of bids to 70, the sources mentioned.


State Financial institution of India’s subsidiary SBI Life has additionally proven curiosity in choosing up Reliance Capital’s stake in Reliance Nippon Life Insurance coverage, they added.

Reliance Nippon Life Insurance coverage Firm, a three way partnership with Japan’s largest life insurer-Nippon Life which holds 49 per cent shareholding, has a paid-up capital of Rs 1,196 crore as of September 30, 2020.

The life insurer with property beneath administration of Rs 21,912 crore on the finish of September had posted a revenue of Rs 35 crore throughout 2019-20.

The monetisation of RCL’s property was initiated by the Committee of Debenture Holders and the Debenture Trustee Vistra ITCL India, which represents 93 per cent of the agency’s complete excellent debt.

The corporate’s complete excellent debt is round Rs 20,000 crore.

The final date for submission of EoIs for the stake sale was December 1.

A complete of 60 bids have been obtained by SBI Capital Markets and J M Monetary Providers, the advisors to the lenders.

The bids have been invited for all or a part of RCL’s stake in subsidiaries Reliance Normal Insurance coverage, Reliance Securities, Reliance Monetary Restricted and Reliance Asset Reconstruction Restricted.

There are plans to promote 100 per cent stake in Reliance Securities and Reliance Monetary Restricted.

The corporate has invited bids for 49 per cent stake in Reliance Asset Reconstruction Restricted. Its 20 per cent stake in Indian Commodity Alternate (ICEX) has additionally been placed on sale.

Apart from RCL, one other debt-ridden group firm Reliance House Finance can be on sale with as many as six suitors submitting their bids.

A separate debt decision is at present underway for Reliance Industrial Finance (RCF), the NBFC arm of the corporate.

{Photograph}: Prashant Waydande/Reuters

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