Wednesday, November 30, 2022

RCap bidders include Piramal, Hindujas, and Torrent

Piramal, Hindujas, Torrent among 5 bidders for RCap

 

Mumbai:In the race to acquire Reliance Capital (RCap) through bankruptcy, five bidders have emerged.There have been no individual bids for Reliance's stake in life and general insurance companies, which represent 90% of the group value, and all of the bids are at the holding company level.


The Hinduja Group, the only new-generation bank without a group insurance company, is one of the bidders, according to sources.The UV Asset Reconstruction Group, Oaktree, Piramal & Cosmea Financial combine, and Ahmedabad-based Torrent Group are the other two.


As Piramal is only interested in Reliance General Insurance, Cosmea will acquire the remainder of the group, so Piramal & Cosmea have bid for the business on a "several basis."When two parties enter into a several liability agreement, each party bears full responsibility for their respective obligations.


Zurich Group and Advent, two of the companies that had expressed interest in Reliance General previously, have not made a bid.Additionally, Aditya Birla Sun Life has abstained.


IndusInd Bank is run by the Hinduja Group, and Oaktree is a private equity fund that lost its bid to Piramal for DHFL.Sam Ghosh is in charge of Cosmea Financial. Prior to being hired by Anil Ambani to lead Reliance Capital, he was an executive at Allianz and was in charge of the Bajaj Allianz joint venture.Five years ago, Ghosh quit Reliance Capital.


Nippon Insurance, the joint venture partner in Reliance Life Insurance, would have to be dealt with by whoever wins the bid.

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