Asia’s richest person Mukesh Ambani’s younger brother Anil Ambani’s company Reliance Capital is going to be auctioned. The board of Reliance was dissolved by RBI on November 29, 2021 due to non-payment of debt and governance issue, after which the auction process of this company has been started.
Companies included in the bidders: According to information received from sources, so far a total of 14 companies have shown interest in the acquisition of Reliance Capital. These companies include Adani Finserve, KKR, Piramal Finance and Poonawalla Finance, Achara Arpwood Verde Partners, Nippon Life, JC Flowers, Brookfield, Oaktree, Apollo Global, Blackstone and Hero Fincorp.
The last date for submission of bids for Anil Ambani group company Reliance Capital has been extended from March 11 to March 25. Now the bidder can submit his bid to RBI by March 25. RBI has said that the bidding company can bid for the entire Reliance Capital or for one or more of its subsidiary companies.
Subsidiary companies of Reliance Capital: Reliance Capital has a total of eight subsidiary companies which include Reliance Home Finance, Reliance Commercial Finance, Reliance Assets Reconstruction Company, Reliance Securities, Reliance Money, Reliance General Insurance, Reliance Health Insurance and Reliance Nippon Life Insurance.
Third NBFC in auction: Reliance Capital is the third non-banking financial company (NBFC) against which insolvency proceedings have been initiated under the IBC (Insolvency and Bankruptcy Code) during the last few years. Earlier, two other NBFCs had declared bankruptcy against Shree Group NBFC and Dewan Housing Finance. According to information received from RBI, all the bidders have shown interest in buying the entire company.
Debt on Reliance Capital: According to the December quarter data, the company has a debt of more than 40 thousand crores. In the financial year 2020-21, the company had a loss of Rs 9,114 crore, while in the last financial year 2019-20, the company had a loss of Rs 1223 crore.