Debt-ridden Anil Ambani Group company receives Rs 4,500 crore offer from potential buyer

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Indebted Anil Ambani Group company offers Rs 4,500 crore to potential buyers

Photo: BCCL

Hinduja Group, Oaktree Capital, Torrent Investment and Cosmea Financial Holdings have offered up to Rs 4,500 crore to acquire Reliance Capital, founded by Anil Ambani, which is undergoing insolvency proceedings. Three other bidders sought to buy only Reliance Capital’s general insurance business, according to the Economic Times.

Cosmea Financial has offered Rs 4,500 crore with a capital injection commitment of Rs 1,060 crore into the beleaguered Anil Dhirubhai Ambani Group company.

Sam Ghosh, the promoter-founder of Cosmea Financial Holdings, led Reliance Capital for 9 years until 2017.

Advent, a consortium led by Piramal Group and Zurich Insurance submitted proposals for Reliance General Insurance only. Advent International and Zurich Insurance have made an offer for a 100% stake in Reliance General Insurance (RGI).

Oaktree and Hinduja submitted bids worth Rs 4,200 crore and Rs 4,000 crore respectively. Torrent Investment offered Rs 4,000, making up Rs 1,000 upfront and Rs 3,000 crore in deferred payments.

The debt-ridden company has received 14 resolution plans through the end of August as part of the company’s insolvency proceedings.

The Reserve Bank of India replaced Reliance Capital’s board in 2021 citing governance issues.

The RBI-appointed administrator, Nagaeswara Rao Y, has not received any separate bid for Reliance Nippon Life Insurance’s 51% stake, the report adds.

Rao had given potential bidders the choice between bidding for all of Reliance Capital, including all of its subsidiaries, and each of the company’s individual businesses separately. Reliance Capital has about 20 financial services companies, including stock brokerage firms, insurance and an asset reconstruction company (ARC).

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