Aditya Birla Capital enters fray to pick up Reliance’s 51% stake in Nippon Life JV

Aditya Birla AMC raises Rs 789 crore from anchor investors

Reliance Capital’s stake in insurance company Reliance Nippon Life Insurance Company (RNLIC) is being eyed by Aditya Birla Capital, with the debt-ridden Reliance arm going through an insolvency resolution.

Aditya Birla Capital is reportedly looking to buy out 51% stake that Reliance has in the joint venture with Nippon Life of Japan.

The deadline for bids in the insolvency process was August 29, before which RNLIC did not see a bid. However, the last date for submitting the binding bids is October 31.

Bidders looking to participate have two options – one is to buy out the entirety of RCL while the other is to bid for specific verticals of the entity.

Apart from Aditya Birla Capital, Torrent Group has partnered with Nippon Life Insurance to bid for Reliance Capital’s 51 per cent stake in Reliance Nippon Life Insurance Company.

A valuer appointed by the administrator has pegged the embedded value of the life insurance company at Rs 5,800 crore, sources told PTI.

The Reserve Bank of India (RBI) had on November 29 last year superseded the board of RCL in view of payment defaults and serious governance issues, appointing Nageswara Rao Y as the administrator in relation to the Corporate Insolvency Resolution Process (CIRP) of the firm.

This is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (IRP) of the firm.

This is the third large non-banking financial company (NBFC) against which the central bank has initiated bankruptcy proceedings under IBC. The other two were Srei Group NBFC and Dewan Housing Finance Corporation (DHFL).

Source: Economic Times (With inputs from PTI)

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