Anil Ambani's Reliance Capital invites bids for stake sale in subsidiaries

Anil Ambani-led Reliance Capital has invited bids to sell stakes in its subsidiaries, including Reliance General Insurance and Reliance Nippon Life Insurance, so as to clear dues worth nearly Rs 20,000 crore. The process to invite expressions of interest (EOI) began on October 31 this year so as to raise capital for making Reliance Capital Limited (RCL) debt free, news agency PTI reported.

The bids were invited for all or part of RCL's stake of subsidiaries Reliance General Insurance, Reliance Nippon Life Insurance Company, Reliance Securities, Reliance Financial Limited and Reliance Asset Reconstruction Limited.

There are plans to sell 100 per cent stake in Reliance Securities and Reliance Financial Limited. The company has invited bids for 49 per cent stake in Reliance Asset Reconstruction Limited. It's 20 per cent stake in Indian Commodity Exchange (ICEX) has also been put on sale.

An independent and transparent asset monetisation process will be run by SBI Capital Markets Limited and JM Financial Services Limited.

In July, the company had said that it has defaulted in repayments to lenders and debenture holders and incurred losses during the June quarter, which indicates that material uncertainty exists that may cast a significant doubt on the company's ability to continue as a going concern.

Meanwhile, Delhi High Court had recently sent notices to three Chinese banks that are looking to recover over $700 million from Ambani. The court asked the lenders for their opinion on a plea by Ambani requesting them to be included in his challenge to a separate bankruptcy case against him in India, Bloomberg had reported.

The matter pertains to loans worth $925 million extended by three Chinese banks - Industrial and Commercial Bank of China, Export-Import Bank of China and China Development Bank - to now defunct Reliance Communications in 2012. While the telecom company initially honoured its repayment obligations, it started defaulting later on. The Chinese banks claim that Ambani had provided personal guarantee against these loans.

Also read: Yes Bank to take physical possession of Anil Ambani's Reliance Group HQ in Mumbai