Financial Bids for Reliance Capital to be submitted today

MUMBAI: The bidders for Reliance Capital assets have to submit their financial bids by August 29 as the final deadline for the submission of bids ends today.

Under two alternatives, the bidders will submit their final, non-binding indicative bids. Option 1 allows bidders to purchase Reliance Capital as a Core Investment Company (CIC), whereas Option 2 allows them to purchase any one or more of RCAP's several business clusters. However, the lenders would like to sell Reliance Capital as a whole (CIC) as opposed to individual companies separately.

The lenders have previously extended the deadline for submitting bids five times. The lenders have also twice extended the deadline for finishing the resolution procedure for Reliance Capital. The procedure now has a final deadline of 1 November 2022.

There were over 54 organisations that submitted EOIs for Reliance Capital's various assets at the beginning of the resolution process, but there are currently just a small number of bidders who are actively communicating with the Administrator.

According to banking sources, just four to five bidders, including Piramal Group and Yes Bank, are currently actively involved in the resolution process of Reliance Capital out of the initial 54 EOIs received.

The Committee of Creditors (COC) even disregarded the requirement of depositing Rs. 75 Cr. Earnest Money Deposit (EMD) by the first filing deadline due to the lacklustre response.

The treatment of three significant business clusters of Reliance Capital, namely Reliance Commercial Finance (RCF), Reliance Home Finance (RHF), and Reliance General Insurance Company, has been the main source of worry for the bidders (RGIC).

Long before RCAP was sent to NCLT, RCF and RHF each through a separate resolution procedure with Authum Investment and Infrastructure.

On the other hand, IDBI Trusteeship is in charge of holding shares of Reliance General Insurance, the most valuable asset in RCAP's whole business portfolio. These shares have not been released by IDBI Trusteeship for the ongoing NCLT-led settlement process.

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