Reliance Capital lenders agree on asset sales in 8 clusters

The other clusters include asset reconstruction business, securities and broking business, life insurance business, non-life insurance business, real estate held by Reliance Capital, and loans in the books of the insolvent finance company.

Applicants can give offers for more than one cluster or the entire company, the people said.

Anil Dhirubhai Ambani Group-promoted Reliance Capital, which was admitted for insolvency proceedings on December 6 last year, is the core investment company with equity stakes in 20-odd subsidiaries and five associate companies.

The administrator under the resolution process will seek expressions of interest (EoIs), setting a deadline of mid-March for the equity held by Reliance Capital in key subsidiaries, sources said.

Administrator did not respond to the request for comment.

It will invite EoIs for 100% equity in Reliance Commercial Finance (RCF), 49.5% in Reliance Home Finance (RHF), 49% in Reliance Asset Reconstruction Company, 100% in Reliance General Insurance, and 51% in Reliance Nippon Life Insurance.

These are the five key companies that are likely to attract investors, people cited above said.

The decision to sell Reliance Commercial Finance (RCF) and Reliance Home Finance (RHF) has raised questions over the lenders’ earlier deal with Authum Investment and Infrastructure to sell loan books of these firms, one of the potential bidders said.

A senior bank official, however, said the latest move will not impact the Authum deal.

“The proposed deal with Authum is only limited to sale of loan books of RCF and RHF while the administrator is seeking bids for the equity stake that Reliance Capital holds in the two finance companies,” the person said.

The lenders had last year voted in favour of a deal to sell loan books of the two financial service companies to Authum for around Rs 4,000 crore

The administrator is likely to set a reserve price of Rs 1 crore each for the equity stakes of RCF and RHF. The reserve price is based on the offer that the lenders had received from Authum last year, people said. The lower reserve price is because the networth is fully written off.

Reliance Capital has verified claims of Rs 23,666 crore mainly from employee pension funds. Lenders are hoping to recover at least Rs 8,000 crore from sale of equity stakes and assets.