Reliance Capital: Reliance Capital lenders agree on sale of assets in 8 groups

Mumbai: Creditors of Reliance Capital have voted in favor of a proposal to seek buyers for eight groups of the company’s businesses, including its stakes in Reliance Commercial Finance and Reliance Home Finance, people at ET have told current of the case.

Other clusters include asset reconstruction business, brokerage and brokerage business, life insurance business, non-life insurance business, real estate held by Reliance Capital and on-book loans of the insolvent financial company.

Applicants can bid for more than one cluster or for the entire company, the people said.

Reliance Capital, promoted by the Anil Dhirubhai Ambani Group, which was admitted to insolvency proceedings on December 6 last year, is the main investment company with stakes in about 20 subsidiaries and five associated companies.

The administrator as part of the resolution process will seek expressions of interest (EOI), setting a mid-March deadline for shares held by Reliance Capital in key subsidiaries, sources said.

The administrator did not respond to the request for comment.

It will invite EoIs to obtain 100% of the capital of Reliance Commercial Finance (RCF), 49.5% of Reliance Home Finance (RHF), 49% of Reliance Asset Reconstruction Company, 100% of Reliance General Insurance and 51% of Reliance Nippon Life Insurance.

These are the five key companies likely to attract investors, the people quoted above said.

The decision to sell Reliance Commercial Finance (RCF) and Reliance Home Finance (RHF) has raised questions about the lenders’ previous agreement with Authum Investment and Infrastructure to sell those firms’ loan portfolios, one of the bidders said potentials.

A senior bank official, however, said the latest decision would not affect Authum’s deal.

“The proposed agreement with Authum is limited solely to the sale of the loan books of RCF and RHF while the administrator seeks offers for the stake that Reliance Capital holds in the two finance companies,” the person said.

Last year, the lenders voted in favor of a deal to sell the two financial services firms’ loan books to Authum for around Rs 4,000 crore.

The administrator is likely to set a reserve price of Rs 1 crore each for the stakes of RCF and RHF. The reserve price is based on the offer lenders received from Authum last year, the people said. The lower reserve price is because the net worth is fully amortized.

Reliance Capital has verified claims of Rs 23,666 crore mainly from employee pension funds. The lenders hope to recoup at least Rs 8,000 crore through the sale of stakes and assets.

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