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Shares of Reliance Capital (RCap) were locked in upper circuit for the fifth straight day, up 5 per cent at Rs 17.93 on the BSE in Wednesday’s trade in an otherwise weak market. Till 11:07 am, a combined 2.03 million equity shares had changed hands and there were pending buy orders for 1.2 million shares on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.59 per cent at 58,845.
In the past one week, the stock price of RCap has surged 27 per cent, as compared to 1.2 per cent decline in the benchmark Sensex. The stock traded at its highest level since April 2022. It had hit a 52-week high of Rs 26 on October 11, 2021 and its all-time high level stands Rs 2,458 on January 10, 2008.
RCap is primarily a holding company, holding investments in its subsidiaries, associates and other group companies. The company’s subsidiaries and associates are engaged in a wide array of businesses in the financial service sector.
Pursuant to the approval of Debenture Holders at their meeting held on January 30, 2020, a Committee of Debenture Holders (CoDH) was constituted. Steering Committee (SteerCo) constituted by CoDH are conducting an independent and transparent asset monetisation process and has appointed Process Advisors and Investment Bankers.
The CoDH and Vistra ITCL (India) Limited, Debenture Trustee had issued an Expression of Interest for key assets of the Company. The Company is engaged with debenture holders to arrive at a resolution by monetization of its assets and unlock the value of its underlying businesses and thereby significantly reduce its overall leverage, subject to approvals from courts, creditors and regulatory authorities.
According to Business Standard report, four companies – IndusInd Bank, Torrent, Oaktree Capital Management, and B-Right Realestate – have made financial bids for RCap as an entire company, with all bids around Rs 4,000 crore, signalling massive haircut for banks if approved by a lender’s committee.
Piramal Enterprises, Zurich Insurance, and Advent International have placed bids for Reliance General Insurance, while there were no takers for the life insurance arm, the newspaper reported last week, quoting banking sources. CLICK HERE FOR FULL REPORT
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