According to a person aware of the development, the deadline has been extended because there were some interested parties who were following the process very closely but could not submit an EoI by 1 December, the earlier deadline.
The asset monetization process is being managed by SBI Capitals Markets (SBI Caps) and JM Financial Services. The asset sale was initiated by the committee of debenture holders of Reliance Capital, represented by Vistra ITCL.
The Anil Ambani-led company’s asset monetization plan already received EoIs from several entities including funds such as Blackstone, Bain Capital and Oaktree, Mint reported on 3 December. On sale are a wide range of businesses, from general and life insurance to asset reconstruction and brokerage to Reliance Capital’s investments in companies such as Paytm E-commerce Pvt Ltd and Naffa Innovation Pvt Ltd.
Investors such as Blackstone, Bain Capital and ChrysCapital and a few others have submitted EoIs for Reliance General Insurance, while in the case of Reliance Nippon Life Insurance, where Reliance Capital’s 51% stake is on sale, investors who have shown interest at the EoI stage include Multiples Alternate Asset Management and Bain Capital, among others, including the holding company of private sector bank.
Interested bidders were allowed to bid for whole or individual parts of the business.
The company has been looking to monetize its assets in order to repay debt and said on 27 November that it has defaulted in interest payments of ₹5.48 crore to Housing Development Finance Corporation (HDFC) and Axis Bank. The principal from HDFC Ltd is ₹523.98 crore and from Axis Bank is ₹100.63 crore. Its total financial indebtedness, including short-term and long-term debt stood at Rs. 20,077.14 crore which includes accrued interest up to 31 October.