Fifty-four companies, including Adani Finserve, ICICI Lombard, Tata AIG, Nippon Life Insurance, and HDFC Ergo, have shown their interest in acquiring debt-ridden Reliance Company Group, according to the sources.
Other bidders are Yes Bank, Bandhan Financial Holdings, Cholamandam Investment, Blackstone Brookfield, KKR, TPG, Oak Tree Capital, Piramal Finance, and Poonawala Finance.
The last date of bid submission was March 11, which had been extended to March 25 by the Reserve Bank-appointed administrator at the request of some prospective bidders who had sought more time to submit the Expressions of Intrest (EoI).
The Reserve Bank of India (RBI), on November 29, 2021, superseded the board of Reliance Capital Ltd (RCL) in respect of payment defaults and serious governance issues.
Reliance Capital Ltd. is the third-largest non-banking financial company against which the central bank recently initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC).
Most bidders have submitted their EOIs for the entire company, whereas others have bid for one and more subsidiaries in RCL.
Reliance Capital’s subsidiaries include Reliance General Insurance, Reliance Securities, Reliance Nippon Life Insurance, Reliance Asset Reconstruction Company, Reliance Securities, Reliance Home Finance, and Reliance Commercial Finance.
The RBI Appointed Nagaerwara Rao Y as the administrator in respect of the Corporate Insolvency Resolution Process (CIRP) of Reliance Capital Ltd.
The Reliance consolidated debt was 40,000 crore, the company informed its shareholders in its Annual General Meeting (ANM) in September last year. The company has also reported narrowing its consolidated net loss to Rs. 1,759 in the quarter ended in December 2021.
The net loss of the company in the same quarter was Rs. 3,966, which was widened from Rs.1,156 crore in the quarter ended September 2021. The company’s total income was Rs. 4,083 crores in Q3FY22, down from Rs.4,890 crores compared to Q3FY21.
RCL was incorporated in March 1986, and is registered as a Non-banking Financial Core Investment Company (CIC)- Non-Deposit Taking Systematically Important (NBFC-CIC-ND-SI) under the RBI Act, 1934.