[ad_1]
IDBI Capital Markets (IDBI Caps), the process advisor to the insurance company for the sale of bonds, has invited Expression of Interest (EoI) from Asset Reconstruction Companies (ARCs) by the evening of July 11. The auction will take place after the EOI, though IDBI Caps has not specified any details of the same in the notice inviting EOI.
LIC did not respond to queries.
Based on the last two trades between the two lenders and an ARC, it is estimated that LIC will recover around 27-30% of the ₹3,400 crore bond amount, said one of the two people mentioned above.
and Ltd had separately sold its capital exposure to Asset Care and Reconstruction Enterprise (ACRE), an ARC, in the last fiscal at Rs 27-28 paise, as reported by ET on December 1.
Second attempt to sell LIC RCAP bonds
HDFC sold term loans worth Rs 524 crore between September and December last year, while Axis Bank sold term loans worth Rs 100 crore and bonds worth Rs 490 crore to ACRE. A core finance company promoted by Anil Dhirubhai Ambani has been going through insolvency proceedings since early December last year. According to the latest available annual report, LIC, which raised Rs 20,560 crore in a public offering last month, had a gross NPA of 7.78% or around Rs 35,130 crore as on March 31, 2021. The shares have fallen nearly 40 per cent since the listing.
This is the second attempt by LIC to sell Reliance Capital bonds. In July last year, it had invited proposals for the stressed asset portfolio of 16 companies, including bonds of Reliance Capital, worth Rs 8,091 crore. The sale did not take place due to differences between the corporation and the bidders on the pricing of the property.
Reliance Capital’s administrator Nageswara Rao Y has accepted claims of Rs 23,666 crore from financial creditors and has set June 30 as the deadline for receiving the firm’s resolution plan. As per the disclosures on the company’s website, LIC has the highest accepted claim of Rs 3,485 crore, followed by LIC pension and group plan with a separate claim of Rs 1,539 crore.
Adani Finserve, Brookfield,
A consortium led by ACRE, Piramal International Holding, TPG Asia and Verde Partners-backed VFSI Holdings are among 54 applicants who have submitted EOIs for Reliance Capital.
Since Reliance Capital has more than 20 finance-related subsidiaries, the administrator has provided two options. An applicant can bid for the entire company or any of its eight groups of assets. These groups include Reliance General Insurance,
Life Insurance, Reliance ARC, and Reliance Commercial Finance. Another cluster combines four financial services companies: Reliance Securities, Reliance Financial Limited, Reliance Wealth Management Limited and Reliance Commodities Limited. The remaining two clusters are investments in real estate and investments in other businesses.
[ad_2]
Source link
Leave a Reply