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Tata AIG, ICICI Lombard, Adani in race to acquire debt-ridden Reliance Capital

By Saima Siddiqui 
Updated Date

New Delhi: Adani Finserve, ICICI Lombard, Tata AIG, and Nippon Life Insurance are among the 54 prominent firms that have joined the race to acquire debt-ridden Reliance Capital Ltd, promoted by the Anil Ambani Group, sources said. The last date for submission of bids for the debt-ridden firm had been extended to March 25 from March 11 earlier by the Reserve Bank-appointed administrator.

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Other bidders include Yes Bank, Bandhan Financial Holdings, Cholamandam Investment, OakTree Capital, Blackstone, Brookfield, TPG, KKR, Piramal Finance and Poonawala Finance, sources said.

The deadline was extended on the request of some prospective bidders who had sought more time to submit the Expressions of Interest (EoI), sources said.

The Reserve Bank of India (RBI) had on November 29 last year superseded the board of Reliance Capital Ltd (RCL) in view of payment defaults and serious governance issues. This is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) recently. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

According to the sources, a majority of the bidders, who have submitted EOIs, have bid for the entire company, while the others have bid for one or more subsidiaries of RCL. The bidders had two options – either they could bid for the entire RCL or any one or more than one of the subsidiaries of Reliance Capital.

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Reliance Capital’s subsidiaries include Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance.

Following the takeover of the board, the RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the company. RBI subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the National Company Law Tribunal (NCLT).

According to the sources, a majority of the bidders, who have submitted EOIs, have bid for the entire company, while the others have bid for one or more subsidiaries of RCL. The bidders had two options – either they could bid for the entire RCL or any one or more than one of the subsidiaries of Reliance Capital.

Reliance Capital’s subsidiaries include Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance.

Following the takeover of the board, the RBI appointed Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the company. RBI subsequently filed an application for initiation of CIRP against the company at the Mumbai bench of the National Company Law Tribunal (NCLT).

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