Reliance Capital receives 6 bids at holding company level

MUMBAI: Anil Ambani's flagship finance company Reliance Capital (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 additional ones from Piramal Group, Zurich Insurance and Advent. These have bid for the general insurance company.

The group's asset reconstruction company, Reliance ARC, has received bids from Jindal Steel & Power and UV ARC. 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 insolvency proceedings by the Reserve Bank of India, is managed by the RBI-appointed administrator Nageswara Rao. The company has verified claims of Rs 23,666 crore and lenders were looking to raise Rs 8,000 crore through the sale of the group companies.The initial bids for RCap are in the range of Rs 4,000-5,000 crore, which is lower than what was expected by lenders. There have not been any bids for Nippon Life Insurance where the Japanese insurer is the joint venture partner. While Nippon is keen on hiking stake, current laws allow a foreign insurance company to hold a maximum of 74% in a life insurance company.

Reliance General is seen as the most valuable in terms of RCap's shareholding. However, the debenture trustee has a pledge on the shares of the non-life company. RCap had pledged shares of RGI as security to raise bonds. The deadline for the submission of bids for RCap ended on Monday. The bidding process was completed after the committee of creditors extended the deadline five times in the past.

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