The CoC (committee of creditors) for Reliance Capital has received eight final binding bids under the insolvency process of the company, said sources.
These include four bids for Reliance Capital as a whole, by Hinduja Group via IndusInd International Holdings, US-based private equity player Oaktree Capital, Ahmedabad-based Torrent Group and Cosmea Financial in partnership with Piramal Group, sources told businessline.
In addition, UV Asset Reconstruction Company has submitted a fee-based bid for the individual assets as a whole under option-I. Further, Jindal Power, Authum Investment Infrastructure and Choice Equity Broking have submitted bids under option-II for individual assets of Reliance Capital.
Piramal Group has submitted a bid in collaboration with Cosmea Financial but its liability will be limited only to Reliance General Insurance and its health business under Reliance Health Insurance, and not to any of the other assets, sources said.
The CoC had invited bids under two options — one where entities bid for Reliance Capital and its subsidiaries and the second where they bid for individual assets or subsidiaries — by November 28. In addition to the insurance arms, Reliance Capital’s other subsidiaries include Reliance Nippon Life Insurance, Reliance Money, Reliance Home Finance, Reliance Securities and Reliance Asset Reconstruction.
UV ARC has reportedly submitted an aggregator bid on a fee-basis for all the assets, and has not submitted any resolution plan for Reliance Capital. As an asset reconstruction company, UV ARC is not involved in operational management and has explained the structure of their bid to the CoC. The CoC will now study the bid and see how they plan to take it forward. This may include UV ARC acquiring the assets, studying what can be sold or restructured, evaluating the valuation and then giving its assessment to the CoC or lenders.
Nippon Life in talks
Now that the final bids are in, Reliance Capital’s CoC will study the plans submitted, undertake compliance checks, study the strong points and what can be reworked and then hold final negotiations with the bidders — all of which could take several weeks, sources said.
With respect to the controversial stake sale in Reliance Nippon Life Insurance, where JV partner Nippon Life is reluctant to sell or dilute its stake, sources said the Japan-based insurer is in talks with all the four players that have submitted bids under option-I to explore any partnership and reiterate its commitment to the Indian life insurance segment.