Reliance Capital to be delisted from exchanges
₹12,142.14 Crore an under the Approved Resolution Plan, the Corporate Debtor (RCL) is proposed to be acquired on a going concern basis and the assets that continue on the books of RCL shall be available post implementation of the Approved Resolution Plan. Following governance issues and payment defaults, the Reserve Bank of India (RBI) took over the board of the Anil Ambani group's firm in November 2021.
Subsequently, on December 2, 2021, the RBI filed a petition with the tribunal to initiate the Corporate Insolvency Resolution Process (CIRP) for RCL. Nageswara Rao Y was appointed as the administrator, who then invited bids in February 2022 for taking over the company.
After the Corporate Insolvency Resolution Process (CIRP), creditors filed claims exceeding ₹38,500 crore, with ₹26,087 crore being admitted. IndusInd International Holdings Ltd (IIHL) proposed a resolution plan offering ₹9,661 crore for Reliance Capital, supplemented by the company's cash balance of ₹500 crore, which would be directed to the lenders.
Initially, four resolution plans were submitted, but all were rejected by the committee of creditors due to lower bid values. A challenge mechanism ensued, with IIHL and Torrent Investments participating.
In June 2023, the Hinduja Group's bid of ₹9,661 crore in upfront cash was selected by the lenders. The stock was down 4.46 percent at ₹11.79 post the news.Milestone Alert!
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