Reliance Capital's Path to Restructuring: A New Beginning

Reliance Capital, burdened by debt, is seeking delisting of its shares amid a resolution process. With IndusInd International Holdings Ltd as the chosen bidder, a Rs 9,650 crore resolution plan is approved, aiming for completion by January 31, 2025. Governance issues led RBI to supersede RCAP's board.

Debt-laden Reliance Capital (RCAP) announced on Tuesday its initiative to delist shares, as part of an ongoing resolution process. This decision comes following approval from the monitoring committee and subsequent applications to BSE and NSE.

The firm also seeks delisting of its non-convertible debentures. The resolution process sees Mauritius-based IndusInd International Holdings Ltd (IIHL) emerging as a successful bidder with an offer of Rs 9,650 crore. IIHL further contributed an additional Rs 200 crore to bolster RCAP's financial standing, indicating a commitment beyond its initial bid.

The National Company Law Tribunal (NCLT) in Mumbai sanctioned IIHL's resolution plan on February 27, 2024, extending the transaction completion deadline to January 31, 2025. Meanwhile, RCAP continues to operate as a core investment entity under RBI's oversight, managing several subsidiaries including Reliance Nippon Life Insurance and Reliance General Insurance.

(With inputs from agencies.)