Top global funds queue up to buy Anil Ambani-controlled Reliance Capital

Mumbai: Some of the largest global private equity companies and distressed asset investors including JC Flowers, Blackstone Group, Oaktree Capital Kohlberg Kravis Roberts (KKR) and Bain Capital have expressed interest in buying a part of whole of the Anil Ambani controlled non banking finance company (NBFC) Reliance Capital (RCap), two people familair with the process said.

These are among the more than 20 entities including domestic asset construction companies (ARCs) that have expressed interest in tge resolution process initiated by creditors to the financial conglomerate which has defaulted on its debt.

"There have been eight EoIs for entire RCap assets on as-is-where-is basis. The prominent among them are Oaktree, J.C. Flower and multiple ARCs," said a person briefed on the bids.

A second person involved in the process confirmed that top global firms have expressed interest but also added that the process is still in its inital stages and serious bidders can only be made out after the financial bids are received.

"Different investors have shown interest for different parts of the business and some have shown interest for multiple parts of the business. More than 20 different firms are in play in various permutations and combinations," this second person said.

A RCap spokesperson did not reply to an email seeking comment.

Creditors to the Anil Ambani-owned company have put majority stakes in its insurance firms, asset reconstruction company, brokerage firm and a part stake a commodity exchange up for sale to recover their dues from the failed financial conglomerate.

December 1 was the last date for submission of EOI for which the process was started on October 31.

RCap's 100% owned general insurance subsidiary, Reliance General Insurance, received 18 interests including Balckstone Group, KKR, Chrys Capital, CVC Capital Partners, and Bain Capital.

Reliance Nippon Life Insurance, in which Rcap owns 51% stake, received 16 bids, including Bain Capital, NIIF, Arpwood Partners, Dabur Investments, Bandhan Bank, and Renuka Ramnath led Multiples Alternate Asset Management, the first person cited above said.

Reliance Securities, the brokerage arm received interest from eight investors, including Bain Capital, Religare Broking, Edelweiss Securities and local ARCs.
For Reliance ARC, six there are six entities envinced interest including Bain Capital, International Asset Reconstruction Company and other ARCs. Its health insurance business Reliance Health, got eight bidders including Blackstone, Bain Capital, Arpwood Partners, and other ARCs. Individual bidders could not be immediately contacted.

"These interests will now be scrutinised to weed out frivilous or ambiguious bids and then the virtual data room will be thrown open to the parties following which financial bids will be called for," said the second person quoted above. There is not timeline set for resolution so far.

Late last month in a notice to stock exchanges, RCap had said its total debt stood at Rs 19,805 crore as of August 2020. About 93% of the debt is through bonds issued by the company, hence the monetisation process is being run by a committee of debenture holders under trustee Vistra ITCL India Ltd. SBI Caps, the investment banking arm of the State Bank of India (SBI), and JM Financial have been mandated to find a buyer for the company.