Reliance Capital's lenders reach agreement on EoI document for bidders

Reliance Capital's (RCap) lenders have reached on an agreement on an Expression of Interest (EoI) document to be floated by the company's administrator to prospective bidders, people briefed on the matter said. The EoI could be ready as early as Friday.

The lenders, at a meeting on Tuesday, decided to give potential buyers two options to bid for the company.

Under the first, potential buyers will be allowed to bid for the company, including RCap's lending book, its subsidiaries and investments in joint ventures.


The second option will split RCap's assets and investments into clusters.

Its lucrative businesses, such as the wholly owned general insurance arm, and its stake in Reliance Nippon Life Insurance will be parked in two separate clusters, the sources said.

The RBI-appointed administrator will seek approval from the National Company Law Tribunal (NCLT) to get its stamp of approval for the proposed EoI terms.

RCap's administrator Nageswara Rao did not respond to ET's emailed queries until press time Tuesday.

The Reserve Bank of India had superseded the board of Reliance Capital on November 30 and brought in Rao, a former executive director at Bank of Maharashtra, as its administrator. The administrator has admitted claims worth ₹24,000 crore of financial creditors so far.

It also appointed a three-member advisory group consisting of former State Bank of India deputy managing director Sanjeev Nautiyal; former Axis Bank deputy managing director Srinivasan Varadarajan and former Tata Capital chief executive Praveen Kadle.

The company was subsequently admitted for insolvency proceedings.