Reliance Capital hits upper circuit as top global funds eyes to buy Anil Ambani-controlled firm

Shares of Reliance Capital hit upper circuit limit of 5 per cent after a report that some of the largest global private equity companies and distressed asset investors including JC Flowers, Blackstone Group, Oaktree Capital, Kohlberg Kravis Roberts (KKR) and Bain Capital have expressed interest in buying a part of whole of the Anil Ambani controlled non banking finance company (NBFC).

The scrip jumped 4.98 per cent to Rs 9.49 in the morning trade, while the benchmark BSE Sensex traded 0.34 per cent higher at 44,768 at around 9.37 am (IST).

These are among the more than 20 entities including domestic asset construction companies (ARCs) that have expressed interest in the resolution process initiated by creditors to the financial conglomerate which has defaulted on its debt.

“There have been eight EoIs for entire RCap assets on as-is-where-is basis. The prominent among them are Oaktree, JC Flower and multiple ARCs,” ET reported.

The report further added that the process confirmed that top global firms have expressed interest but also added that the process is still in its initial stages and serious bidders can only be made out after the financial bids are received.

Late last month in a notice to stock exchanges, Reliance Capital had said its total debt stood at Rs 19,805 crore as of August 2020. About 93 per cent of the debt is through bonds issued by the company, hence the monetisation process is being run by a committee of debenture holders under trustee Vistra ITCL India Ltd. SBI Caps, the investment banking arm of the State Bank of India (SBI), and JM Financial have been mandated to find a buyer for the company.