Reliance Capital’s (RCAP) asset sale by Indian banks has obtained an awesome response with eight firms – together with Oaktree, JC Flowers and 6 asset reconstruction firms (ARCs) – submitting EOIs (expressions of curiosity) for your complete firm. .
Blackstone, KKR, and Bain Capital, amongst others, are within the working for its common insurance coverage arm, and Bandhan Financial institution, Bain and Dabur Investments have proven curiosity for RCap’s 51 p.c stake within the life insurance coverage enterprise.
In all, lenders’ advisors – SBI Capital Markets and JM Monetary – have obtained over 60 completely different bids for the property. Corporations which have proven curiosity will now be given entry to the corporate’s knowledge room and can then be requested to submit their monetary bids for the agency or its belongings.
Curiously, within the ongoing sale of DHFL, 24 firms had submitted EOIs, however solely 4 submitted monetary bids.
A supply mentioned 18 bidders, together with ChrysCapital, JC Flower, Blackstone, KKR, CVC Capital Companions and Bain Capital, have submitted EOIs for Reliance Common Insurance coverage, which owns 100 per cent of RCap.
For Reliance Nippon Life Insurance coverage, during which RCap holds 51 per cent stake, 16 bids have been obtained from lenders together with Bain Capital, NIIF, Arpwood Companions, Dabur Investments, Bandhan Financial institution and A number of Asset Administration.
A supply near the event mentioned eight bidders have submitted EoIs for Reliance Securities, together with Bain Capital, Religare Broking, Edelweiss Securities and some ARCs.
There are six bidders for Reliance ARC, together with Bain Capital and Worldwide Asset Reconstruction Firm. Eight bidders have proven curiosity for Reliance Well being, together with Blackstone, Bain Capital, Arpwood Companions and a few ARCs. There are additionally a number of bidders for RCap’s stake in ICEX and Paytm.
The monetization of RCap’s belongings was initiated by the debenture holders’ committee and debenture trustee Vistara ITCL India, which represents 93 per cent of the agency’s complete excellent debt.
The advisors began the value unlocking course of on 31 October and it ended on Tuesday. As on September 2020, Rcap had a consolidated debt of Rs 26,869 crore and the standalone entity had a debt of Rs 17,446 crore.
RCap is just not the one one going by way of debt decision. In March, CARE Scores positioned Rs 11,726 crore of the agency’s subsidiary Reliance Residence Finance within the default class. RHFL had mentioned that its lenders have entered into an inter-lender settlement to reach at a debt decision plan. However the course of was delayed resulting from litigation within the Delhi Excessive Court docket. RHFL has Rs 1,000 crore money in its books, the corporate knowledgeable the inventory exchanges on November 28.
A separate mortgage decision is presently underway for the corporate’s NBFC arm, Reliance Business Finance (RCF). The belongings underneath administration (together with securitized portfolio) with RCF as on March 31, 2019 had been Rs 11,190 crore as towards Rs 14,269 crore as on March 31, 2019.