Reliance Capital gets bids for stake sale!

Last updated: 03 Dec, 2020 | 01:59 pm

Reliance Capital gets bids for stake sale!

Reliance Capital has received interest from many global private equity companies and distressed asset investors including JC Flowers, Blackstone Group, Oaktree Capital, Kohlberg Kravis Roberts (KKR) and Bain Capital for buying a part of the whole of Reliance Capital, according to media reports.

What’s on sale?

  • Assets on the block include Reliance Capital’s general and life insurance, asset reconstruction and stockbroking. Reliance Capital’s investments in companies such as Paytm E-commerce Pvt. Ltd and Naffa Innovation Pvt were also available for potential investors and Interested parties were allowed to bid for the entire business or a part of it.
  • December 1 was the last date for submission of EOIs for the stake sale and in all 60 different bids have been received by SBI Capital Markets and JM Financial Services, the advisors to the lenders. The table below shows Reliance Capital’s subsidiaries and the number of EoI’s received by Reliance Capital.

INDmoney Analysis

Reliance Capital has a debt burden of more than ₹20,000 crore. About 93% of the debt is through bonds issued by the company, hence the monetisation process is being run by a committee of debenture holders under trustee Vistra ITCL India Ltd. Reliance Capital’s creditors have put up these assets for sale to recover their dues from the company. However, these are still initial stages, and final investors can only be identified after the company receives financial bids.

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