InvestorQ : What are the key things to know about the recent bids for Reliance Capital, which has been referred by creditors for asset monetization?
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What are the key things to know about the recent bids for Reliance Capital, which has been referred by creditors for asset monetization?

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7 months ago
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Here is a quick update on what you need to know about the bids received for Reliance Capital, the financial services flagship of the ADAG group.

· Prima facie, there has been an overwhelming response to the sale of assets of Reliance Capital by Indian banks, which have large outstanding amounts from RCAP.

· It is estimated, as per preliminary revelations, that there were at total of 14 bidders including 6 ARCs for the assets of the company.

· Some of the marquee names that are in the race for the assets of Reliance Capital include Blackstone, KKR, and Bain Capital; all global private equity giants.

· These 3 PE funds are interested predominantly in the general insurance business of RCAP, which is where they see an indirect play on health.

· Among the local names, Bandhan Bank and Dabur Investments have evinced interest in picking up a majority stake in the life insurance business.

· Reliance Capital owns 51% stake in Reliance Nippon Life Insurance; a joint venture with Nippon Life of Japan. RCAP had sold the entire AMC stake to Nippon last year.

· In addition, there have also been bidders for Reliance Securities, Reliance ARC, Reliance Health and ICEX; which is the commodity exchange owned by Reliance ADAG.

· Apart from all the above stated businesses of the ADAG group, Reliance Home Finance and Reliance Commercial Finance are also currently under debt resolution.

· RCAP had consolidated debt of Rs.26,869 crore in the group and standalone debt of Rs.17,446 crore as of Sep-20; which awaits the monetization of assets.

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