Independent valuations 70% more than the bid value of RCap

2 Dec 2022 , 04:42 PM

According to reports in the Economic Times, independent valuers have given Reliance Capital a liquidation value of up to Rs 13,000 crore. This has hit a snag in the company’s auction, with Duff and Phelps and RBSA Advisors valuing the company at 70% higher than bids received from potential acquirers.

The receiver received several offers from potential buyers. The Cosmea-Piramal joint venture submitted a binding offer of Rs 5,231 crore, followed by Hinduja Group at Rs 5,060 crore. Torrent Group’s bid was Rs 4,500 crore and Oaktree Capital’s bid was Rs 4,200 crore.

RCAP, both independent valuers assigned a liquidation value to RCAP’s life and general insurance as well. The liquidation, to be carried out under a new amendment to the Insolvency and Bankruptcy Code (IBC), would allow the CoC to sell each individual business separately.