RCap lenders extend deadline for firm bids

Mumbai: Lenders to Reliance Capital (RCap) have agreed to give bidders until October 30 to submit binding bids for the company under insolvency proceedings.

Although many have given indicative bids, these are not binding as they are subject to conditions. The committee of creditors of the company on Tuesday decided to accede to requests from bidders to give more time for submitting their binding bids. Lenders had already granted a four-week extension, which ended on September 20. Different bidders had asked for separate timelines ranging from an additional eight weeks to 16 weeks.

RCap has received six bids at the holding company level under the insolvency process. The bidders are IndusInd Bank, Torrent Group, Oaktree, Cosmea, Authum Capital, and B Right Real Estate. Cosmea Financial Holdings is promoted by Sam Ghosh who headed RCap in the initial years of the group. Authum Capital is majority owned and controlled by Alpana Dangi, wife of investor Sanjay Dangi.

In addition to the bids at the holding company level, the resolution professional has received others from Piramal Group, Zurich Insurance and Advent for the general insurance company. The group’s asset reconstruction company Reliance ARC has received bids from Jindal Steel & Power and UV Asset Reconstruction Company. There have been a handful of other bids for the remaining group companies. Overall, the number of actual bids are less than half of the 54 expressions of interest received for the group companies.

RCap, which was inducted into the insolvency proceedings by the RBI, is managed by Nageswara Rao, the administrator appointed by the central bank. The company has verified claims of Rs 23,666 crore and lenders were looking to raise Rs 8,000 crore through the sale of group companies.

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