Reliance Capital: EoI invited for key assets

Our Bureau Mumbai | Updated on November 01, 2020 Published on November 01, 2020

Bidders have time till Dec 1 to submit offers

Reliance Capital’s Committee of Debenture Holders and the Debenture Trustee Vistra ITCL India Ltd has invited expression of interest for key assets of the Anil Ambani-backed finance entity, including the entire stake in Reliance General Insurance Company Ltd, Reliance Securities Ltd and 51 per cent stake in Reliance Nippon Life Insurance Company Ltd. The EoI was floated on Saturday and potential bidders have time till December 1 to submit an offer.

SBI Capital Markets Ltd and JM Financial Services Ltd are managing the bidding process. Reliance Capital’s secured debt is about ₹15,000 crore and the debenture holders represent 93 per cent of the total debt of the company.

According to sources, bidders can submit EoI for all or part of RCap’s stake in key subsidiaries, including 100 per cent stake in Reliance General Insurance, which has investment book of ₹12,315 crore as on September 30, 2020. Its gross direct premium income was at ₹4,501 crore during the first six months of FY21. On sale is also the 51 per cent stake in Reliance Nippon Life Insurance, which has AUM of ₹21,912 crore. Other assets on sale are 100 per stake in Reliance Securities, a broking and distribution company; 100 per cent stake in Reliance Financial, an NBFC engaged in the business of financing, money lending, capital market-linked financing activities; 49 per cent stake in Reliance Asset Reconstruction, which manages portfolio of ₹1,996 crore; 20 per cent stake in Indian Commodity Exchange; 100 per cent stake in Reliance Health Insurance.

RCap’s investments in Naffa Innovations Pvt Ltd, Paytm E-Commerce Pvt Ltd are also on offer.

According to analysts, the Employees’ Provident Fund Organisation (EPFO) has an exposure of ₹2,500 crore to Reliance Capital, while Life Insurance Corporation of India has an exposure of ₹4,700 crore to RCap and its subsidiary Reliance Home Finance.

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Published on November 01, 2020
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