Tata AIG, ICICI Lombard and Nippon Life have evinced interest for the profit-making insurance arm of Reliance Capital (RCap), joining several prominent financial companies from India and abroad in the race for RCap’s assets.
The final day to submit an expression of interest (EoI) was March 25 and the bidders will now get access to the latest information about RCap before they make financial bids.
HDFC Ergo, Bandhan Financial Holdings, Cholamandalam Investment and Finance Company, Adani Finserv, YES Bank, OakTree Capital Management, Blackstone, NewQuest Capital Partners, IndusInd International Holdings, Brookfield Asset Management, TPG, Zurich Insurance Group, Ares SSG Capital, ArpWood Partners, Capri Global Holdings, Edelweiss Alternative Asset Advisors, International Asset Reconstruction Company, JC Flowers & Co, Motilal Oswal Financial Services, Square Four Housing, Multiples Asset Investment are among the 54 companies that have submitted their EoIs.
The earlier date to submit EoIs was March 11, which was extended by 2 weeks by the administrator following requests from some prospective bidders who had sought more time to submit EoIs.
According to sources, the vast majority of bidders who have submitted EoIs have bid for the entire company, while others have bid for one or more subsidiaries of RCap.
The bidders had two options — bid for the entire Reliance Capital or one or more of the eight clusters or subsidiaries of RCap.
The RCap subsidiaries include 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In November 2021, the Reserve Bank of India (RBI) had superseded the board of RCap and appointed Nageswara Rao Y as administrator of the company.
The RBI subsequently filed an application for initiation of corporate insolvency resolution process against the company at the Mumbai Bench of the National Company Law Tribunal.
In February this year, the RBI-appointed administrator had invited EoIs for sale of Reliance Capital.
The financial bids are expected by May.