The troubles of Anil Ambani, who are in trouble due to debt, seem to be increasing. Five big bidders have withdrawn their bids from the auction process of his company Reliance Capital, which is going through insolvency process. Now only the name of Piramal Enterprises is left among the big bidders. Significantly, 54 companies had submitted Expression of Interest (EOIs) in March this year to buy Reliance Capital.
Sources told our affiliate Financial Express that the world’s largest asset management company Blackstone, HDFC Ergo, ICICI Lombard, Tata Group and Adani Group are among the companies that have withdrawn their bids. Earlier, Tata Sons’ subsidies Tata AIG General Insurance Company had withdrawn its bid to buy the General Insurance business of Reliance Capital.
According to the report, Piramal Enterprises is still in talks with Yes Bank and Toronto Group to buy the company. Simultaneously, Zurich Insurance and Cholamandalam Group are also showing interest in Reliance’s general insurance business.
According to the Request for Resolution Plan (RFRP) submitted by the creditors of the company, they have two options. First, either he should sell the business and assets of the entire company together or separate the sale of all the subsidiaries of the company. Reliance Capital’s subsidiaries are Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Asset Reconstruction Company, Reliance Securities, Reliance Commercial Finance and Reliance Home Finance.
The deadline for submission of bids has been extended in the meeting of the Committee of Creditors (CoC) held on June 16. Earlier also the bid submission date for Reliance Capital was extended.
On November 29 last year, the board of Reliance Capital was suspended by the RBI for delay in repayment of loans. Along with this, the bankruptcy process of the company was also started. Later in April 2022, two of the company’s creditors Credit Suisse and Axis Bank took the company to the NCLT for recovery of Rs 760 crore debt, after which bids were invited from companies to sell the company’s assets and business in February.