Piramal Financial and Zurich Insurance, who’ve submitted separate bids for the overall insurance business of Reliance Capital, have determined to form an equal partnership to bid for the Reliance General Insurance.
According to sources, each Piramal and Zurich will maintain 50 per cent every within the proposed three way partnership firm.
If this proposed JV succeeds in rising because the profitable decision applicant for RGIC, then it’s going to mark the entry of Zurich Insurance in India’s normal insurance business.
In the impartial bids submitted on the finish of August, Piramal had valued Reliance Capital’s normal insurance business at Rs 3,600 crore, whereas Zurich had quoted Rs 3,700 crore for the identical. The third bidder, Advent had submitted a Rs 7,000 crore decision plan for RGIC.
By partnering, Zurich and Piramal won’t compete with one another, and thus for RGIC, it’s going to solely be a two horse race between Advent and Zurich-Piramal consortium.
The RCAP Administrator and Committee of Creditors (COC) had appointed a worldwide skilled – Tower Watson, to do the precise valuation of RGIC. This valuation is offered to all of the bidders and the actuarial valuation for 100 per cent of RGIC is Rs 9,450 crore.
The final date for the submission of binding bids for Reliance Capital and its a number of subsidiaries is October 30. Earlier, it was September 29, however the COC granted a 4 week extension, as the vast majority of bidders had sought extra time to full the due diligence course of.
Reliance Capital had acquired 14 non-binding bids for its a number of companies. Six firms had submitted bids for the whole firm, whereas the remainder of the bidders had submitted bids for its a number of subsidiaries.
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