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Even as the committee of creditors of Reliance Capital is set to meet on Tuesday, prospective bidders have sought an extension to the September 29 deadline to submit binding bids.
All 14 of the initial bidders are still in the running, but some have sought additional time to complete the due diligence before they submit the final bid, sources close to the development told BusinessLine.
“That (seeking an extension) is in the process. Some people have requested, some are in the process of requesting, it’s not very clear as of yet,” a source said.
Extension for due diligence
If approved, this could further delay the insolvency proceedings for Reliance Capital. The deadline for the submission of the initial bids was extended five times till August 29, wherein Reliance Capital received 14 prospective bids for its various assets.
The extension sought by the various parties ranges from 4 to 10 weeks, and will be subject to the approval of the CoC and other stakeholders, industry sources said.
They added that the CoC is likely to consider the extension to facilitate maximum participation from prospective bidders. Bidders will also be required to make an Earnest Money Deposit of ₹75 crore along with the binding bids.
The deadline for submitting the final resolution plan for Reliance Capital, with the National Company Law Tribunal, is November 1.
Potential bidders
Under the 14 prospective bids, Reliance Capital has received six offers in the range of ₹4,000-4,500 crore from Torrent Capital, IndusInd Group, Oaktree Capital, Cosmea Financial, Authum Investment, and B Right Group for the entire assets.
Piramal Finance and Zurich Re submitted bids of ₹4,000 crore and ₹3,500 crore, respectively, for Reliance General Insurance, whereas Advent International submitted a bid of around ₹7,000 crore, according to industry participants. They added that the binding bids, however, could be different based on the due diligence and internal audits of the bidders.
Further, the company also received prospective bids from Jindal Steel and Power and UV Asset Reconstruction Company for its asset reconstruction business and from Choice Equity, Global Fincap and Geand Bhawan for Reliance Securities and other assets.
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