Mumbai: Five bidders have emerged in the race to acquire Reliance Capital (RCap) under bankruptcy. All the bids are at the holding company level and there have been no individual bids for Reliance’s stake in life and general insurance companies, which account for 90% of the group value.
According to sources, the bidders include the Hinduja Group – the only new-generation bank without a group insurance company. The others are Ahmedabad-based Torrent Group, Oaktree, Piramal & Cosmea Financial combine, and UV Asset Reconstruction Group.
Piramal & Cosmea have bid for the company on a ‘several basis’ as Piramal is interested in only Reliance General Insurance, and Cosmea will acquire the rest of the group. Under a several liability bid by two parties, each party is responsible for their portion or respective obligations.
Among the companies that had put in an expression of interest, Zurich Group and Advent, which were keen on Reliance General earlier, have not put in a bid. Aditya Birla Sun Life has also stayed away.
The Hinduja Group is the promoter of IndusInd Bank, Oaktree is a private equity fund that had fought a bidding war with Piramal for DHFL and lost. Cosmea Financial is led by Sam Ghosh, a former Allianz executive who headed the Bajaj Allianz joint venture before he was roped in by Anil Ambani to lead Reliance Capital. Ghosh quit Reliance Capital five years ago.
Whoever wins the bid would have to deal with Nippon Insurance, the joint venture partner in Reliance Life Insurance.