Tata AIG, ICICI Lombard and Nippon Life are amongst 54 prominent Indian and foreign financial companies in the race for the highly profitable insurance arms of Reliance Capital, which was put under administration the previous year due to defaults and governance issues.
The last day to submit an expression of interest (EOI) has been extended by two weeks to 25th March to give access to the latest information before they make financial bids.
Companies that have submitted EOIs
Among 54 companies to have submitted their EOI are – HDFC Ergo, Bandhan Financial Holdings, Cholamandalam Investment, Adani Finserv, Yes Bank, OakTree Capital, Blackstone, New Quest, Indusind International, Brookfield, TPG, Zurich Insurance Group, Ares SSG Capital, ArpWood Partners, Capri Global Holdings, Edelweiss Alternative, International Asset Reconstruction Company, JC Flower, Motilal Oswal Financial Services, Square Four Housing, UV Multiple Asset Investment.
Why was the last day to submit EOI moved forward?
The previous date to submit the EOI was 11th March but it was moved forward following a request by some potential bidders. According to the sources, the big majority of the bidders who have submitted EOIs bid for the entire company. Other companies have bid for one or more subsidiaries of Reliance Capital.
Companies have two options: they can bid for the entire Reliance Capital or bid for any one or more of its eight clusters or subsidiaries of Reliance Capital.
Reliance Capital’s subsidiaries
Some of Reliance Capital’s subsidiaries are Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance.
In November 2021, the Reserve Bank of India (RBI) supplanted the board of Reliance Capital and appointed Nageswara Rao Y as the company’s administrator.
RBI has filed an application for the commencement of a corporate insolvency resolution process against the company at the Mumbai bench of the National Company Law Tribunal (NCLT).
In February 2021, the RBI appointed administrator invited EOI for sale of Reliance Capital. The financial bids are expected by May.
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