Anil Ambani-backed
Reliance Capital freezes on the upper circuit limit during Thursday's trading session as the company receives massive interest for acquisition.
At around 12.30 pm, Reliance Capital traded at the upper price band of Rs9.49 per piece higher by 4.98% on Sensex.
According to PTI report, as many as eight suitors, including the US-based Oaktree and J C Flower, have expressed their interest to acquire Reliance Capital Ltd (RCL), a part of debt-ridden Anil Ambani-promoted Reliance Group, sources said.
The sources also said in the report that Expressions of Interest (EOIs) were invited for all or part of RCL's stake of subsidiaries Reliance General Insurance, Reliance Nippon Life Insurance Company, Reliance Securities, Reliance Financial Ltd and Reliance Asset Reconstruction Ltd. Monetization process is run under the aegis of Committee of Debenture Holders and the Debenture Trustee Vistra ITCL India Ltd which represents 93 per cent of the total outstanding debt of RCL pegged at Rs20,000cr.
Reliance Capital had invited companies to submit their EOI for the purchase of a stake in certain subsidiaries/investments of the company. The last date of submission was scheduled on December 01, 2020.
Notably, the asset monetization process is being initiated by Vistra ITCL (India) on behalf of the Committee of Debenture Holders (CoDH). And in this regard, JM Financial was appointed as the sole investment banker to coordinate the process.
It is being known that Reliance Capital received somewhat 60 different bids. About 18 bids received were reportedly for 100% acquisition of Reliance Capital's general insurance arm.
Other investors who have shown their keen in Reliance Capital and subsidiaries are - Chryscap, J C Flower, Blackstone, CVC Capital Partners, KKR, and Bain Capital.