IndusInd, Oaktree Capital, 2 other entities submit bids for Reliance Capital

New Delhi: IndusInd Bank, US-based asset management firm Oaktree Capital, Torrent Group and B-Right Group have submitted bids for the takeover of debt-ridden Reliance Capital Ltd (RCL), according to sources.

The sources said that these bids are in the range of ₹ 4,000 crore for the company, which has eight different business verticals.

The last date for submission of the bids ended on August 29. The deadline was extended five times.

Initially, 54 companies had expressed interest in RCL, but only four submitted their bids under insolvency resolution.

Two options were available for the bidders. Under the first option, bidders were required to submit bids for the entire RCL, and in the second one, they had the choice to bid for specific verticals of the company.

These verticals include general insurance, asset reconstruction and securities businesses.

The sources said that Piramal Group, Zurich Re, and the US-based private equity fund Advent had placed bids for the Reliance General Insurance business.

They also added that no bids were received for the Reliance Nippon Life Insurance business.

Jindal Steel and Power and UV Asset Reconstruction Company have submitted bids for RCL's asset reconstruction business.

Choice Equity and Global Fincap are among the bidders for other assets of RCL.

In a regulatory filing, RCL said the 17th meeting of the company's Committee of Creditors (CoC) was held on Tuesday.

The company's administrator appraised the CoC about the status of claims, the status of the CIRP process, going concern operations of the company and the way forward in terms of the activities or milestones as stipulated under the Insolvency and Bankruptcy Code (IBC).

Under the resolution process, the filing said that RCL's administrator had received a total of 14 resolution plans/ bids.

In November last year, the Reserve Bank of India (RBI) superseded the board of RCL, given payment defaults and serious governance issues. The company was referred for the Corporate Insolvency Resolution Process (CIRP).

This is the third large Non-Banking Financial Company (NBFC) against which the central bank has initiated bankruptcy proceedings. The other two were Srei Group NBFC and Dewan Housing Finance Corporation Ltd (DHFL).

Courtesy:NDTV, Newsday Express