Deadline for submission of bids for Reliance Capital extended to Mar 25

The Reserve Bank-appointed administrator of Reliance Capital on Friday extended the deadline for inviting bids for the debt-ridden firm to March 25.

The Reserve Bank of India (RBI) had on November 29 last year superseded the board of Reliance Capital Ltd (RCL), promoted by the Anil Ambani Group, in view of payment defaults and serious governance issues.

Last date for receipt of expression of interest is March 25, as per a regulatory filing.

The previous last date was March 11.

The RBI had appointed Nageswara Rao Y as the administrator in relation to the corporate insolvency resolution process (CIRP) of the corporate debtor, it said, adding after due consultations with and approval of the Committee of Creditors (CoC), bids are invited for submission of resolution plans.

This is the third large Non-Banking Financial Company (NBFC) against which the central bank has initiated bankruptcy proceedings under the Insolvency and Bankruptcy Code (IBC) recently. The other two were Srei Group NBFCs and Dewan Housing Finance Corporation (DHFL).

In September, Reliance Capital at its annual general meeting (AGM) had informed shareholders that the company’s consolidated debt was Rs 40,000 crore. It had reported narrowing of its consolidated net loss to Rs 1,759 crore in the quarter ended December 2021.

The company had posted a net loss of Rs 3,966 crore in the same quarter a year ago. However, net loss widened from Rs 1,156 crore in the preceding quarter ended September 2021. Total income of the company stood at Rs 4,083 crore in Q3FY22, down from Rs 4,890 crore in Q3FY21.

RCL was incorporated on March 5, 1986 and is registered as a Non-Banking Financial Company Core Investment Company (CIC) -Non-Deposit Taking Systemically Important (NBFC-CIC-ND-SI) under the Reserve Bank of India Act, 1934.

As a CIC, it is primarily a holding company, holding investments in its subsidiaries, associates, and other group firms.

The company’s subsidiaries and associates are engaged in a wide array of businesses in the financial sector.

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