Edelweiss, JM Financial, 11 others submit EOIs for Anil Ambani’s Reliance Commercial Finance

Reliance Home Finance is a subsidiary of Anil Ambani-promoted Reliance Capital.

By Ankur Mishra

Lenders have received as many as 13 expression of Interests (EoIs) for Reliance Commercial Finance (RCFL), sources close to development told FE. The company has received EoIs from Edelweiss ARC, JM Financial ARC, Asset Reconstruction company (ARCIL), Capri Global and UVARC, among others as per sources.

The suitors were supposed to submit EoIs by August 11. The lenders, led by Bank of Baroda (BoB), had given a choice to bidders for acquiring the whole company or combination of its asset book. Reliance Home Finance is a subsidiary of Anil Ambani-promoted Reliance Capital. The company has total borrowings of Rs 9,812 crore.

The creditors had earlier signed inter-creditor agreements (ICAs) in July last year for Reliance Commercial Finance under June 7, 2019 circular of the Reserve Bank of India (RBI).

Since resolution could not be reached within six months of signing ICA, the pact was extended till September, 2020.

Reliance Commercial Finance has been re-branded as Reliance Money as per its website.

The non-banking finance company (NBFC) has assets under management (AUM) of Rs 11,000 crore. The bid process is being run by Deloitte as the resolution advisor.

The Reliance capital subsidiary had reported a net loss of Rs 852 crore in the March quarter, compared to net loss of Rs 2,000 crore in the same quarter last year.

The auditors had warned that company’s ability to meet obligations depend significantly on material uncertain events including restructuring of loans and achievement of debt resolution under the ICA framework.

Reliance Home Finance, another subsidiary of Reliance Capital had also invited EoIs from bidders. The suitors can submit their expression of interest by August 31.

The home finance company has a total debt of Rs 13,000 crore. Bank of Baroda is lead creditor to Reliance Home Finance as well.