Due to its mounting debt, Reliance Capital has started removing its shares from stock markets. After the monitoring committee gave permission, the business submitted applications to the BSE and NSE to delist its equity shares. According to a regulatory filing, it has also attempted to delist its non-convertible debentures from the BSE.
With an offer of Rs 9,650 crore, Mauritius-based IndusInd International Holdings Ltd (IIHL) was the victorious bidder for Reliance Capital’s resolution. IIHL then made a further contribution of Rs 200 crore to improve the company’s solvency above and above the offer sum. On February 27, 2024, IIHL’s resolution plan was authorized by the National Company Law Tribunal (NCLT) in Mumbai. The transaction’s completion date was moved to January 31, 2025.
Resolution Process and Regulatory Actions:
Reliance Capital is listed as a core investment business with the (RBI). Reliance Nippon Life Insurance, Reliance Insurance, Reliance Securities, Reliance Asset Reconstruction, and Reliance Commercial Finance are among the companies it manages. The RBI stepped in in November 2021 due to the Anil Dhirubhai Ambani Group company’s payment failures and governance problems.
The central bank removed Reliance Capital’s board, and Nageswara Rao Y was named administrator. He requested bids in February 2022 to acquire the business. This action was taken to resolve Reliance Capital’s financial difficulties and guarantee a methodical resolution procedure.
Reliance Capital’s actions demonstrate its continuous attempts to address its financial issues by taking calculated risks. The firm intends to stabilize its operations and successfully handle debt commitments by delisting its shares and interacting with possible investors like IIHL.
