Adani Finserve, KKR, Piramal Finance, and Poonawala Finance are among the 14 prominent firms that have expressed interest to acquire debt-ridden. Reliance Capital, promoted by the Anil Ambani Group, sources said. The last date for submission of bids was extended to March 25 from the previous March 11 by the RBI-appointed administrator.
The Reserve Bank of India (RBI) had on November 29 last year superseded the board of Reliance Capital Ltd (RCL) in view of payment defaults and serious governance issues.
This is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) recently. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).
In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company’s consolidated debt was Rs 40,000 crore. It had reported narrowing its consolidated net loss to Rs 1,759 crore in the quarter ended December 2021.
The company had posted a net loss of Rs 3,966 crore in the same quarter a year ago. However, net loss widened from Rs 1,156 crore in the preceding quarter ended September 2021.
The total income of the company stood at Rs 4,083 crore in Q3FY22, down from Rs 4,890 crore in Q3FY21. RCL was incorporated on March 5, 1986, and is registered as Non-Banking Financial Company Core Investment Company (CIC)-Non-Deposit Taking Systemically Important (NBFC-CIC-ND-SI) under the Reserve Bank of India Act, 1934.
Shares of Reliance Capital added 4.7 per cent in early trade on Monday after 14 prominent firms. It includes Adani Finserve, KKR, Piramal Finance, and Poonawala Finance have expressed interest to acquire the debt-ridden NBFC, reports said.
Reliance Capital, which is promoted by the Anil Ambani Group, saw its scrip rise to a high of Rs 14.35 as against Rs 13.70 at the previous close on the National Stock Exchange.
About Reliance Capital
RCL was incorporated on March 5, 1986, and is registered as Non-Banking Financial Company Core Investment Company (CIC)-Non-Deposit Taking Systemically Important (NBFC-CIC-ND-SI) under the Reserve Bank of India Act, 1934.
In September, Reliance Capital in its annual general meeting (AGM) had informed shareholders that the company’s consolidated debt was Rs 40,000 crore. It had reported narrowing its consolidated net loss to Rs 1,759 crore in the quarter ended December 2021.
The company had posted a net loss of Rs 3,966 crore in the same quarter a year ago. However, net loss widened from Rs 1,156 crore in the preceding quarter ended September 2021. The total income of the company stood at Rs 4,083 crore in Q3F Y22, down from Rs 4,890 crore in Q3FY21
