The Committee of Creditors (CoC) of Reliance Capital has accepted a proposal by Aditya Birla Capital to bid for Reliance Nippon Life Insurance Company, a agency that didn’t get any bids within the ongoing insolvency course of.
The transfer would pave approach for sooner closure of Reliance Capital’s ongoing chapter course of as the present deadline to submit binding bids ends on October 31.
Earlier, a valuer appointed by the administrator for Reliance Capital’s insolvency proceedings had pegged the embedded worth of the life insurance firm at Rs 5,800 crore.
The approvals have been accorded following the CoC assembly held final week, sources shut to the event mentioned.
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The present deadline to submit binding bids ends on October 31, and the timeline to file the ultimate decision plan for Reliance Capital earlier than the National Company Law Tribunal’s (NCLT) Mumbai bench ends on November 1.
Gujarat-based Torrent Group — which has presence in prescribed drugs, energy and metropolis gasoline distribution — had earlier partnered with Nippon Life Insurance to bid for Reliance Capital’s 51% stake in Reliance Nippon Life Insurance Company.
Reliance Capital holds a 51% stake in Reliance Nippon Life Insurance, and the remaining is held by Japan’s Nippon Life.
The personal sector insurer had recorded a complete premium of Rs 5,037 crore for monetary 12 months FY22, as in opposition to Rs 4,736 crore posted in the course of the year-ago interval.
On November 29, 2021, RBI had outdated Reliance Capital’s board following fee defaults and governance points, and appointed Nageswara Rao Y because the administrator for its chapter course of.
Reliance Nippon Life Insurance, a Reliance Capital group firm, was put below option-2, whereas the remaining property of have been put below option-1.
While Reliance Nippon Life Insurance had not obtained bids in the course of the earlier bidding course of, the remaining companies of Reliance Capital acquired 14 non-binding bids.
Torrent Group was among the many corporations that had submitted bids for Reliance Capital’s property below option-1.
