Piramal Group and Zurich Insurance are supposedly in talks to set up a 50:50 partnership to bid for Reliance General Insurance under Reliance Capital’s insolvency proceedings.
The partnership is to set up a special purpose vehicle (SPV) which, in turn, will bid for the general insurance arm of Reliance Capital, according to media reports.
Both companies had made individual bids for Reliance General Insurance in the initial round of bids, which ended on August 30. Last week, the deadline to submit the final bids, post-due diligence, was extended by a month till the end of October.
Piramal Group is reported to have made a bid of ₹3,600 crore and Zurich Insurance ₹3,700 crore for the general insurance arm. Advent International was the third entity to make an individual bid — the highest at ₹7,000 crore.
If the combined bid of Piramal Group and Zurich Insurance is accepted, it will mark the Switzerland-based insurer’s entry into the Indian general insurance sector.
When contacted by BusinessLine, Zurich Insurance said it does not comment on “market rumors or speculations” and Piramal Capital refused to comment.
Global valuation company Willis Tower Watson, appointed by the committee of creditors and administrator of Reliance Capital, had pegged Reliance General Insurance’s actuarial valuation at ₹9,450 crore, higher than the prospective bids received so far.