Four bidders in the final race for Reliance Home assets

Assets Care & Reconstruction Enterprise Ltd (ACRE) along with Hong Kong-based private equity Ares SSG, Capri Global, Kotak Special Situation Fund and Us-based investment firm Avenue Capital are among the four bidders that remain in the final to acquire Reliance Home Finance Limited (RHFL)

Avenue Capital has partnered Asset Reconstruction Company (India) Limited for the bid. While lenders favour proposals for the entire company, Capri Global is understood to have emerged as the highest bidder for the retail assets of RHFL.

Led by Bank of Baroda, lenders to Reliance Home Finance Ltd and Reliance Commercial Finance Ltd had in August this year proceeded with the resolution plan and had sought bids for the two companies.

Bank of Baroda had earlier written to the RBI in May seeking resolution of RHF and RCF, through NCLT under Section 227 of the Insolvency and Bankruptcy Code. The section empowers the RBI to refer a financial service provider or a non-banking finance company with an asset size of ₹500 crore or more to NCLT for resolution. Separately, the lenders to the two companies had sought bids for resolution plans for the two companies. As many as 13 investors had submitted an expression of interest for Reliance Commercial Finance including JM Financial ARC, Edelweiss ARC, UGRO Capital and UV ARC. Satisfied with the progress in the resolution of Reliance Home Finance and Reliance Commercial Finance outside the insolvency laws, the Reserve Bank of India is understood to have rejected a proposal to refer the two companies to the National Company Law Tribunal.