The Hinduja Group, Oaktree Capital, Torrent Investment, and Cosmea Financial Holdings have offered up to Rs 4,500 crore to acquire the Anil Ambani-founded Reliance Capital, which is undergoing insolvency proceedings. Three other bidders have sought to buy only the general insurance business of Reliance Capital, according to Economic Times.
Cosmea Financial has offered Rs 4500 crore with a commitment of capital infusion of Rs 1060 crore into the beleaguered Anil Dhirubhai Ambani Group company.
Sam Ghosh, the promoter-founder of Cosmea Financial Holdings, headed Reliance Capital for 9 years until 2017.
Advent, a Piramal Group-led consortium and Zurich Insurance submitted proposals for Reliance General Insurance only. Advent International and Zurich Insurance have bid for 100 per cent stake in Reliance General Insurance (RGI).
Oaktree and the Hinduja submitted bids worth Rs 4200 crore and Rs 4000 crore respectively. Torrent Investment offered Rs 4,000, constituting Rs 1000 upfront and Rs 3,000 crore in deferred payments.
The debt-ridden company have received 14 resolution plans until August end as part of the company’s insolvency proceedings.
The Reserve Bank of India superseded the board of Reliance Capital in 2021 citing governance issues.
The RBI-appointed administrator Nagaeswara Rao Y did not receive any separate bids for the 51% stake of Reliance Nippon Life Insurance, the report added.
Rao had given potential bidders a choice between bidding for the entire Reliance Capital, including all of its subsidiaries, and, each of the company’s individual businesses separately. Reliance Capital has about 20 financial services companies including securities broking, insurance and an asset reconstruction company (ARC).
