Reliance Capital starts monetisation process, EOI invited for key assets

Reliance Capital invited (RCAP) initial bids, known as Expression of Interest in market parlance, putting up a bundle of eight key assets for sale as the troubled non-banking finance company is now aiming to repay a mammoth Rs 15,000 crore debt using expected sales proceeds.

SBI Capital Market and JM Financial are helping the Anil Ambani-owned company in this asset monetisation plan, which was launched last Saturday. Interested parties can submit their interest to own such assets by December 1 this year.

The committee of debenture holders and a debenture trustee, which represents about 93 percent of outstanding debt of Reliance Capital is overseeing the whole monetisation process.

Reliance Capital did not respond to ET’s query.

“We hereby inform that Expression of Interest has been invited by the Committee of Debenture Holders in relation to the Company’s Asset Monetization plan,” it said in an exchange notification without giving details.

The company is aiming to sell stakes, wholly or partly, it holds in some of its key subsidiaries including in Reliance General Insurance Company Limited (RGI), Reliance Nippon Life Insurance, Reliance Securities, Reliance Asset Reconstruction, 100% stake in Reliance Health Insurance, Reliance Financial, two sources with direct knowledge of the matter told ET.

Life insurance business is in the form of a joint venture with Nippon holding 49 percent. Its assets under management were at Rs 21,912 crore at the end of second quarter this financial year.

Reliance Securities is the broking and distribution arm of the group, which offers services across asset classes including equities, commodities, derivatives, currency, mutual funds, bonds & corporate fixed deposits.

Barring Reliance Life and Asset Reconstruction, the group will likely to sell the whole business in the rest of the subsidiaries. RCAP may sell up to 51 percent in the life business and 49 percent in the Securities business.

RCAP is also targeting to monetise its non-core investments with the non-banking lending aiming to sell 20% stake in Indian Commodity Exchange, a local commodity derivatives exchange.

The company has private equity investments including in Paytm E-Commerce Pvt Ltd, Naffa Innovations Pvt Ltd. Potential buyers of such investments are now welcome.

AUMs of select subsidiaries:
Nippon Life: Rs 21,912 crore
General Insurance: Rs 12,315 crore
Asset Reconstruction: Rs 1,996 crore


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