Reliance Commercial Finance, a wholly-owned subsidiary of Reliance Capital, has received expressions of interest (EoIs) from as many as 13 global and domestic investors, after lenders decided to seek a resolution of the entity under the June 7 circular of the Reserve Bank of India (RBI) for distressed assets.
Among the investors, who have expressed interest in acquiring the entity, are Capri Global, Edelweiss ARC, UV ARC, Ugro Capital JM Finance ARC, India RF, ARCIL, Authum Investments & Infra, Assets Care and Reconstruction Enterprise. Other investors include CFM ARC, Invent ARC, Rare ARC and International Assets Reconstruction Company.
A consortium of lenders with Bank of Baroda as the lead banker had invited bids for the troubled entity, with Deloitte managing the bid process as resolution advisors. The inter-creditor agreement amongst the lenders was signed in July 2019, and lenders to the entity comprised banks holding 91 per cent of the total debt and the rest held by mutual funds, pension funds and others.
The resolution is being pursued by change in management of the entity by acquiring a 100 per cent stake. A resolution plan from the investors would entail acquiring the entity on as-is-where-is basis, or buying the firm with one or more asset books on as-is-where-is-basis, and acquiring one or more asset books on as-is-where-is basis.
Reliance Commercial Finance’s total borrowing is to the tune of Rs 9,812 crore as of March 2020. It has come down from 10,284 crore as of March 2019. Its asset under management is to the tune of Rs 11,000 crore. It is mainly engage in providing small and medium enterprise loans, loans against property, infra financing, agriculture loans and supply chain financing.