Anil Ambani, Chairman of the Anil Dhirubhai Ambani Group (File photo)
Photo: BCCL
Reliance Capital lenders will hold one-on-one meetings with eight bidders to discuss the details of the resolution plans and ask the latter to increase the offers made so far, the report added.
Kroll and Druff, the two companies appointed by the insolvency administrators to value the company, have estimated the liquidation value in the range of Rs 12,500 to Rs 13,000 crore. The highest offer from Piramal Enterprises-Cosmea Financial Holdings is Rs 5,231 crore, which is 60% below the liquidation value.
Other bidders in the race for Reliance Capital include Hinduja Group, Oaktree Capital, Torrent Investments and UV Asset Reconstruction Company (ARC).
As part of the resolution plan put forward by Piramal-Cosmea, Piramal would acquire Reliance General Company, a subsidiary of Reliance Capital for Rs 3,750 crore, and Cosmea would acquire the remaining units for Rs 1,481 crore. The two companies have offered Rs 4,250 crore upfront and Rs 981 crore at the end of the second year.
Sam Ghosh, founder and developer of Cosmea Financial Holdings, led Reliance Capital for almost 9 years until 2017.
The second highest bid came from the Hinduja Group, which offered Rs 4,100 crore up front and Rs 320 crore at the end of the third, fifth and seventh years.
Torrent Investments offered Rs 4,500 crore, of which Rs 1,100 crore would be an upfront payment, while the remaining Rs 3,400 would be spread over 5 years.
Oaktree Capital's Rs 4.2 billion offer includes an initial payment of Rs 1 billion and Rs 3.2 billion over five years.
Reliance Capital's subsidiaries include Reliance General Insurance, Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction Company, Reliance Home Finance and Reliance Commercial Finance.
In November last year, the Reserve Bank of India replaced the board of directors of Reliance Capital and appointed Nageswara Rao Y as administrator in connection with the company's Corporate Insolvency Resolution Process (CIRP).
RBI subsequently filed a CIRP initiation application against the company in the Mumbai court of the National Company Law Tribunal (NCLT).
In early February this year, the RBI-appointed administrator invited expressions of interest (EoI) for the auction.
In September, RCL at its annual general meeting (AGM) informed shareholders that the consolidated debt of the company stood at Rs 40,000 crore. It also reported a reduction of its consolidated net loss to Rs 1759 crore in the quarter ending December 2021.
The company had posted a net loss of Rs 3,966 crore in the same quarter of the previous year. However, the losses increased from Rs 1,156 crore in the previous quarter of September. The company's total revenue stood at Rs 4,083 crore in the third quarter of FY22, up from Rs 4,890 crore in the third quarter of FY21.
RCL was incorporated on March 5, 1986, and is registered as a Non-Systemically Important Deposit Taking (NBFC-CIC-ND-SI) Principal Investment Bank Finance Corporation (CIC) under the Reserve Bank Act of India, 1934.
