The deadline for the submission of Decision Plan for Reliance Capital (RCAP) is prone to be prolonged but once more as bidders search extra time to finish the due diligence course of.
In accordance with sources, few bidders, together with Piramal, Torrent, Oaktree and IndusInd, have written to the RCAP Administrator to increase the deadline by 20 to 35 days.
The RCAP decision plan submission date has already been prolonged 4 occasions up to now couple of months. The present deadline to submit the plan ends on August 10, whereas the unique date was Could 26.
Some bidders need the current deadline of August 10 to be pushed to August 30, whereas some have sought extension until September 15.
The Committee of Collectors (COC) shall be assembly within the coming week to take inventory of the decision course of and contemplate the deadline extension.
The Reliance Capital had initially obtained 54 Expression of Curiosity (EOI), however now solely a handful of bidders are lively on the due diligence stage. Majority of the bidders have deserted the method.
Owing to an especially poor response to the Reliance Capital decision plan, the COC has additionally waived the situation of paying Rs 75 crore Earnest Cash Deposit (EMD), within the first submission date.
The transfer to waive off the EMD within the first submission date is one more try by the COC to maintain the decision course of going, as bidders proceed to desert the RCAP decision course of
One of many bidders, Piramal Group can also be going through regulatory roadblock as IRDAI has flagged considerations over Piramal Group’s bid for the Reliance Nippon Life Insurance coverage. As per the rules, Piramal, who already has a promoter stake in a life insurance coverage agency, can’t choose up an identical stake in one other life insurer.
The sources revealed that COC and Administrator are extra eager on receiving bids beneath Choice-1, i.e., for the Reliance Capital as a CIC (Core Funding Firm).
Beneath Choice-2, bidders can bid for 8 totally different companies/clusters of RCAP, together with Normal Insurance coverage, Life Insurance coverage, ARC, Securities enterprise and so forth.
The RCAP decision has been fraught with regulatory hurdles for the reason that starting of the method. After questions have been raised on the decision means of RCAP’s a number of companies beneath Choice-2, the distinction of opinion had emerged between COC and the Administrator.
The precondition of forming a consortium by the totally different bidders, for the bidding of RCAP’s a number of enterprise clusters, and making an all money bids, drove the vast majority of the Decision Candidates away.
In consequence, out of 54 Potential Decision Candidates (PRA), solely 5 to six, together with Piramal, Oaktree, Sure Financial institution, Torrent, IndusInd at the moment are lively.