Reliance Capital lenders discuss IIHL resolution plan

IIHL has agreed to infuse Rs 300 crore into Reliance General Insurance and offer another Rs 50 crore for the items, taking to the total bid amount to Rs 10,000 crore.

Published: 29th April 2023 08:56 AM  |   Last Updated: 29th April 2023 08:56 AM   |  A+A A-

Anil Ambani

Reliance Capital Chairman Anil Ambani. (File| PTI)

By Express News Service

MUMBAI:  The lenders of Reliance Capital have nudged the Hinduja Group firm IndusInd International Holdings Limited to shell out more money for the assets of the debt-laden firm undergoing the insolvency process. 

IIHL has agreed to infuse Rs 300 crore into Reliance General Insurance and offer another Rs 50 crore for the items, taking to the total bid amount to Rs 10,000 crore. The entire bid amount will be paid upfront in cash, according to a source.

The firm was the highest bidder with an offer of Rs 9,650 crore in the second round of the auction held on Wednesday. The Committee of Creditors (CoC) held a meeting on Friday to discuss the resolution plan of the Hinduja Group firm.

The creditors feel the offer by IIHL is still less than the Rs 13,000 crore liquidation value of RCap. Their negotiations are still on to further improve the offer. Lenders are discussing the possibility of holding the next round of auctions.

Total value of IIHL’s bid is Rs 1,900 crore more than its own bid of Rs 8,110 crore in the first Challenge Mechanism held in December 2022. Torrent’s highest bid was Rs 8,640 crore in the first challenge mechanism. IIHL bid is higher by Rs 1,380 crore.

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