Monetization of Reliance Capital assets begins, debenture trustee requests EoIs

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Priyanka Iyer | Principal Correspondent

Updated November 02, 2020 | 16:06 IST

Vistra debenture trustee ITCL India released the Expression of Interest (EoI) document on October 31, listing the subsidiaries and the amount of Reliance Capital’s stake in those that have been offered for sale.

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Representation image | Photo credit: IANS

Highlights

  • The EoI document lists the main subsidiaries of Reliance Capital that have been put up for sale
  • The deadline for the submission of EoIs is 5:00 p.m. on December 1, 2020

Bombay: The monetization of the assets of Reliance Capital, led by Anil Ambani, began as EoIs were called in for the sale of the company’s stake in its subsidiaries. The Vistra ITCL India Debenture Trustee initiated the process on behalf of the Company’s Debentureholder Committee. The document released by Vistra ITCL India on October 31 states that the deadline for submitting EoIs is 5:00 p.m. on December 1, 2020.

The subsidiaries / investments of Reliance Capital listed in the document to be monetized are as follows:

  1. 100% stake of Reliance Capital in Reliance General Insurance
  2. 51% stake of Reliance Capital in Reliance Nippon Life Insurance
  3. 100% of Reliance Capital’s stake in Reliance Securities
  4. 100% of Reliance Capital’s stake in Reliance Financial
  5. 49% of Reliance Capital’s stake in Reliance ARC
  6. 19.57% stake of Reliance Capital in Indian Commodities Exchange
  7. 100% of Reliance Capital’s stake in Reliance Health Insurance
  8. 11.63% of Reliance Capital’s stake in Naffa Innovation and 0.36% in Paytm E-commerce

“Potential bidders may submit EOIs for the acquisition of one or more investments as is and as is (with their associated responsibilities),” the document reads. Reliance Capital’s current NCD issue stands at Rs 16,273.53 crore. Reliance Capital debenture holders represent approximately 93.2% of the company’s outstanding debt as of August 31, 2020. JM Financial has been appointed investment banker for the monetization process.

The company recorded a loss of Rs 1,124 crore at consolidated level for the first quarter of FY21, compared to after-tax profit of Rs 1,233 crore in the corresponding quarter of the previous year.

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