Highlights

  • Bidders have up to March 25 to submit EoI
  • Over half a dozen bids already been submitted for Rel Cap
  • Reliance Capital has over 8 subsidiaries

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Adani, Piramal, Poonawala all eyeing to acquire this business from Anil Ambani

In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company's consolidated debt was Rs 40,000 crore.

Adani, Piramal, Poonawala all eyeing to acquire this business from Anil Ambani

Adani Finserve, KKR, Piramal Finance and Poonawala Finance are among the 14 prominent firms that have expressed interest to acquire debt-ridden Reliance Capital Ltd, promoted by the Anil Ambani Group, sources said.

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The last date for submission of bids for the debt-ridden firm was extended to March 25 from the previous fixed date of March 11 by the Reserve Bank-appointed administrator.

The Reserve Bank of India (RBI) had on November 29 last year superseded the board of Reliance Capital Ltd (RCL) in view of payment defaults and serious governance issues.

This is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) recently. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

The deadline has been extended on the request of some prospective bidders who have sought more time to submit the EOIs, sources said.

ArpWood, Varde Partners, Multiples Fund, Nippon Life, JC Flowers, Brookfield, Oaktree, Apollo Global, Blackstone, and Hero Fincorp are the other major companies that have submitted Expressions of Interest (EoI) for Reliance Capital by 11 March, they said.

According to the sources, the vast majority of the bidders, who have submitted EOIs, have bid for the entire company.

The bidders have two options - either they can bid for the entire RCL or any one or more than one of the eight subsidiaries of the NBFC firm.

The Reliance Capital subsidiaries include Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance.

Following the takeover of the board, RBI-appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the company.

RBI subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the National Company Law Tribunal (NCLT).

Earlier in February this year, the RBI appointed administrator had invited expressions of interest (EoIs) for sale of Reliance Capital.

In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company's consolidated debt was Rs 40,000 crore. It had reported narrowing of its consolidated net loss to Rs 1,759 crore in the quarter ended December 2021.

The company had posted a net loss of Rs 3,966 crore in the same quarter a year ago. However, net loss widened from Rs 1,156 crore in the preceding quarter ended September 2021. Total income of the company stood at Rs 4,083 crore in Q3FY22, down from Rs 4,890 crore in Q3FY21.

RCL was incorporated on March 5, 1986 and is registered as Non-Banking Financial Company Core Investment Company (CIC)-Non-Deposit Taking Systemically Important (NBFC-CIC-ND-SI) under the Reserve Bank of India Ac

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