Reliance Capital Ltd has received a total of 14 bids for its debt resolution under the insolvency process, the deadline for which ended on Monday. Of these bids, six are for the entire group business, whereas the remaining are for one or multiple entities under Reliance Capital, a source told BusinessLine.

IndusInd Bank, Torrent Investment and Oaktree Capital are among the six who bid for Reliance Capital as a company under option-1, the source said, adding that B. Right Real Estate is also one of the bidders. However, it was not confirmed as to which option the entity has bid under. Queries sent to these entities were unanswered at the time of publication.

Bidders had the option of bidding under two options, wherein option-1 entailed bidding for Reliance Capital as a whole with all its arms, and option-2 comprised bidding for each of the individual businesses of the group. All the bids under option-1 are in the range of about ₹4,000 crore, according to reports.

While the Committee of Creditors (CoC) has so far preferred bids under option-1, all the bids will be discussed in detail based on the revised financials, the source said, adding that this is the initial bidding process and following the negotiations, the final bids will be decided. The date for the next meeting of the CoC for Reliance Capital is still undecided.

Bids under option-2

In addition to the six bids under option-1, Reliance Capital has received three exclusive bids for Reliance General Insurance, and an exclusive bid each for Reliance Securities and Reliance Asset Reconstruction Company, the source said.

Zurich Insurance Group is one of the bidders for Reliance General Insurance.

“Zurich confirms it has submitted a non-binding offer to acquire a stake in Reliance General Insurance Company Limited. The terms of any transaction are subject to negotiations and there can be no assurance that a transaction will take place,” the company said in response to an email by BusinessLine.

Piramal Group and Advent International are also reported to have bid for the general insurance business. Advent International refused to comment on the same.

Meanwhile, Jindal Steel and Power and UV Asset Reconstruction Company have put in bids for Reliance Capital’s ARC business, whereas Choice Equity Broking, Globe Fincap and The Grand Bhawan have submitted bids for Reliance Securities and other entities, according to industry participants.

Reliance General Insurance

The bids have been submitted even as IDBI Trustee and Reliance Capital are in a deadlock over pledged shares of Reliance General Insurance Company — a key asset for the resolution of Reliance Capital.

Reliance Capital had pledged its entire shareholding in Reliance General Insurance in favour of the debenture trustee IDBI Trusteeship, which was later invoked. After the initiative of insolvency proceedings, Reliance Capital had asked IDBI Trusteeship to free up the shares. However, the former contended that it is merely the custodian and has no authority to hand them over.

In the NCLT hearing on Tuesday, it was argued whether Reliance General Insurance should be treated as an individual case or pari passu. The NCLT has reserved the order for a later date. This is an inter-creditor issue and should not impact the bidding process, the source said.

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