54 companies have bid for the takeover of the debt-ridden Anil Ambani group company Reliance Capital. These companies include Adani Finserve, ICICI Lombard, Tata AIG, HDFC Ergo and Nippon Life Insurance. Sources have given this information. Shares of Reliance Capital closed at Rs 14.30, up 2.88% on the NSE on Friday.
The last date for bidding was March 25
Other bidders include Yes Bank, Bandhan Financial Holdings, Cholamandalam Investment, Oak Tree Capital, Blackstone, Brookfield, TPG, KKR, Piramal Finance and Poonawalla Finance. Explain that the administrator appointed by the Reserve Bank of India had extended the last date for submission of bids from March 11 to March 25. Sources said the deadline for bidding was extended following requests from some potential bidders. These companies had sought more time to submit the Expression of Interest (EOI).
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Reserve Bank had dissolved the board of directors
The Reserve Bank had on November 29 last year dissolved the board of directors of Reliance Capital over the issues of payment default and conduct of business. It is the third largest non-banking financial company (NBFC) against which the central bank has initiated action under the Insolvency and Bankruptcy Code. The other two companies are Srei Group’s NBFCs and Dewan Housing Finance Corporation (DHFL).
Most companies want full stake
Sources said that most of the bidders have given EoI to take over the entire company. At the same time, some companies have bid for one or two subsidiaries of Reliance Capital. The bidders had two options either to bid for the entire company Reliance Capital or for one or two of its subsidiaries. Subsidiaries of Reliance Capital include Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance.
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Application was made in NCLT
After the dissolution of Reliance Capital’s board, the Reserve Bank had appointed Nageswara Rao Y as administrator for the company’s Corporate Insolvency Resolution Process (CIRP). The Reserve Bank then applied for initiation of CIRP against the company before the Mumbai bench of the National Company Law Tribunal (NCLT). Earlier in February this year, the Reserve Bank appointed an administrator for the company and invited bids for the sale of Reliance Capital.